On Day 1 your new hire walks into her office, a goodie bag of company-branded items sits on her desk. Her computer is fully setup with all the applications she requires to hit the ground running. There is no paperwork to complete because it was completed weeks ago. A welcome lunch was scheduled for later that day with her manager and colleagues.
Research shows that when Onboarding is done correctly, it leads to [1]
- Higher Job Satisfaction
- Organization Commitment
- Lower Turnover
- Higher Performance Levels
- Career Effectiveness
- Lowered Stress
There are no do-overs with a new-hire’s first impression of your company and it can have a lasting impact on an employee’s loyalty, performance, and long-term commitment to the firm. Creating a positive onboarding experience is no easy task; the onboarding process can be an HR team’s logistical nightmare. To make a good first impression an HR team needs to guide an employee through extensive paperwork, assist with benefit enrollment, get the employee the right security access, and provide the employee with necessary equipment.
22% of staff turnover occurs in the first 45 days of employment [2]
The right Human Capital Management (HCM) system can make the onboarding process seamless by providing your HR team with a user-friendly interface to design the optimal onboarding experience. It allows the user to include links to key documents and create notifications (e.g. notify an HR Manager that an approval is required). Today’s best in class HCM systems guide users through the creation of automated workflows.
FinServ recently implemented a leading HCM tool, for a premier independent investment advisory firm. This implementation included a major overhaul of the client’s onboarding process. With the client’s Onboarding process now in the HCM system, the HR team is able to provide employees with Federal and State tax forms, Compliance paperwork and Benefits information all electronically (eliminating printing and shipping costs). The system will also send system notifications to IT, Facilities, etc. Creating electronic documents and eliminating interdepartmental communications has resulted in major efficiency gains for the client.
When employees go through structured onboarding, they are 58% more likely to remain with the organization [3]
Making a great first impression with new employees requires a coordinated effort between organizations (HR, IT, Facilities, Compliance, etc.). For example, HR needs data from the New Hire’s Manager, IT needs to setup a network account for the new employee, and Facilities needs to set up access to the building. HCM platforms allow managers in HR to create interdepartmental workflows that send notifications when action is required and provide tracking with due dates to ensure tasks are completed long before the new hire’s first day. Managers have real-time transparency into a process to understand exactly where and with whom these critical steps sit.
77% of Best-in-Class organizations begin the onboarding process before day one [4]
FinServ has found that leading organizations are spending the time to create onboarding plans that link with HCM systems. The best-in-class organizations have created detailed onboarding plans, which are a formal document, or roadmap, outlining the specific timeline, goals, responsibilities and support available to new hires. This document helps firms succeed because it spells out what should be done and what assistance is to be provided. The most effective onboarding plans are written, communicated to all members of the company, and consistently applied and tracked over time [5].
In the example of the Onboarding process, the gains are immeasurable. HR wastes less time on manual data entry and paperwork, HR can better coordinate with the other departments, and most importantly: your organization makes a great first impression on new hires. A seamless Onboarding process can go a long way to solidify an employee’s loyalty, performance, and long-term commitment.
62% of companies that have a solidified onboarding program experience faster time-to-productivity, 54% claim to have better employee engagement [6]
Onboarding is a process not an event. An employee’s first day is just the start of her onboarding. The most effective HR organizations continue to engage with new employees through effective education and training programs. This includes regular checkpoints and effective feedback loops to gain better insight into how the new employee is adapting to their new role.
All of this may be facilitated by a highly functioning HCM system. Future articles will explore best practices in these areas and how the HCM system can support and facilitate these additional processes. FinServ is dedicated to helping clients create the optimal Human Resource departments and enterprise level operations.
One of the best practices we have found is to choose and implement the best Human Capital Management (“HCM”) system for an organization’s unique needs. FinServ uses its extensive industry knowledge in combination with 10+ years of vendor selection and systems integration to vet how these HCM systems can best enhance and create efficiencies for firms like yours.
To learn more about FinServ Consulting’s Human Capital Management expertise, please contact us at info@finservconsulting.com or (646) 603-3799.
References
[1] SHRM Foundations’ Effective Practice Guidelines Series, Talya N. Bauer, Ph.D
[2] Llarena, Melissa. “How Not to Lose Your New Employees in Their First 45 Days.” Forbes. Forbes Magazine, 2013.
[3] Hogan, Maren. “How to Get Employee Onboarding Right.” Forbes. Forbes Magazine, 2015. Web.
[4] Mauer, Roy. “Onboarding Key to Retaining, Engaging Talent.” SHRM. N.p., 16 Apr. 2015..
[5] Bauer, T. N., & Elder, E. (2006). Onboarding newcomers into an organization. Invited presentation at the 58th Annual Society for Human Resource Management (SHRM) Conference & Exposition. Washington, D. C.
[6] Mauer, Roy. “Onboarding Key to Retaining, Engaging Talent.” SHRM. N.p., 16 Apr. 2015.
About FinServ Consulting
FinServ Consulting is an independent experienced provider of business consulting, systems development, and integration services to alternative asset managers, global banks and their service providers. Founded in 2005, FinServ delivers customized world-class business and IT consulting services for the front, middle and back office, providing managers with optimal and first-class operating environments to support all investment styles and future asset growth. The FinServ team brings a wealth of experience from working with the largest and most complex asset management firms and global banks in the world.
