This paper is my own work that I created specifically for this course and this section. All research or material I used in preparing this paper has been properly acknowledged within the assignment in accordance with academic standards for complete and accurate citation of sources.

COVER MEMO

TO: Mr. Anderson Green, Director of Human Resources

FROM: (Name), Manager of Training

DATE: October 26, 2023

SUBJECT: An Effective Onboarding Program for New Hires

Retaining top talent is crucial for any organization that wishes to maintain a competitive edge in the marketplace today. Failure to devise innovative ways to retain top talent places the organization at risk of incurring unnecessarily high costs in employee turnover. Available data from the Institute of Corporate Productivity shows that the cost of replacing a single employee in the US is between 90 and 200 percent of the employees annual pay (Walker-Schmidt et al., 2022). Fortunately, studies have shown that effective onboarding is beneficial in increasing new employees productivity, engagement, and retention (Walker-Schmidt, 2021). Guided by these findings, I believe that an onboarding program would effectively address the problem of high turnover among new business consultants reported in the recent past. The high turnover among consultants has continued to deny the company the opportunity to benefit fully from available talent. This cover memo provides a brief description of this problem and the potential benefits of an onboarding program.

The Problem

The problem is that turnover rates among new business consultants at the company are at an all-time high. Reviewed data shows that 90 percent of business consultants hired over the past three years did not reach their seven-month anniversary. This happens despite the company offering competitive salaries and bonuses, effective promotional opportunities, and high-visibility consulting assignments. Customers are complaining about having to adjust to a new consultant every six months, and some have threatened to withdraw their business from the company. At the same time, the cost of replacing exiting consultants is beginning to affect the companys net income and competitiveness. For instance, it costs the company approximately $50,000 in training and recruitment of a new consultant each time one leaves. In light of this, the company president requested the department to investigate the high turnover among consultants and develop recommendations to address the problem.

A needs- assessment exercise conducted jointly by myself and the staffing manager revealed that current and former consultants did not feel supported in their first six months of work. They spent a substantial amount of time trying to get accustomed to the company systems, policies, and operations, with little support forthcoming from managers and the rest of the employees. For this reason, they ended up missing deadlines, making mistakes, and producing reports that did not conform to the companys guidelines. At the same time, the consultants are under constant pressure from their managers to reach high productivity levels. However, six months into their hire, most consultants are still struggling to understand their jobs performance expectations, the companys consulting methods, and the corporate culture. On their part, the managers admit that they do not know how to help the new hires know what they need to know about the company.

The Proposed Solution

The proposed solution is an onboarding program for new consultants at the company. Onboarding is a strategic process that organizations use to attract new employees, engage them, accustom them to the organizational culture, and assimilate them into the organization (Lamb, 2011). During onboarding, the new hire will be educated about their job and related expectations, and about the companys processes, procedures, policies, values, and goals (Walker-Schmidt, 2021). Ultimately, this will make it easier for them to socialize into the corporate culture.

Primarily, it turns out that the reason why consultants leave within a short time is that they are unable to assimilate into the companys corporate culture, systems, and processes. In their 2016 book, Naff et al. (2016) point out that 16 percent of senior executives in the US who leave their jobs within the first year of hire do so because they do not understand performance expectations, owing to the lack of a strategy to help them assimilate quickly. As Walker-Schmidt et al. (2021) points out, onboarding would help new hires build an emotional connection with the company, transforming them from outsiders to insiders. Studies have shown that ultimately, onboarding would improve retention among new hires. In one study, Walker-Schmidt et al. (2022) found that onboarded employees in the information technology sector stayed one year longer than their control group counterparts. Another study (as cited in Bell, 2021) found that an effective onboarding program increased retention rates by 52 percent, while increasing organizational commitment and job satisfaction.

Studies have additionally shown that onboarding programs result in higher levels of employee productivity by reducing the risk of guesswork and stress for newly-hired employees (Bell, 2021). A study by Texas Instruments (as cited in Bell, 2021) found that onboarded employees took two months less to be fully productive relative to their counterparts who did not go through an onboarding program. In their survey of the worlds top performing companies, the Aberdeen Group also found that onboarding improved time-to-productivity for new employees by 62 percent (Bell, 2021). For these reasons, an onboarding program would be a fundamental requirement for increased performance, organizational commitment, job performance, and retention among new business consultants.

Onboarding Program Overview

Program Objectives

Traditionally, the company has used an informal onboarding system that is not guided by a standard organizational plan. However, the proposed system is a formal onboarding program. It is guided by a documented set of coordinated procedures and policies and geared at providing the new hire with information about their job and helping them adjust in terms of both socialization and tasks (Bell, 2021). The onboarding program pursues four primary objetives:

i) To increase first-year retention among new business consultants by 50 percent by the end of the second year of implementation (Bell, 2021). This will be achieved through providing on-the-job training, as well as tools and information that will provide clarity on job-related expectations and responsibilities, thus reducing the risk of errors and guesswork.

ii) To increase engagement levels of new consultants by 35 percent by the end of their first year. This will be achieved through increasing the new hires knowledge about the companys environment, policies, and culture, and assigning mentors to offer extra support and help them get acclimated (Bell, 2021).

iii) To reduce time-to-productivity among newly-hired consultants from one year to six months (Sims, 2013). This will be achieved through providing the needed tools and information during orientation and onboarding to develop job knowledge and hence, reduce the risk of guesswork, which results in stress among new hires (Bell, 2021).

iv) To increase socialization among newly-hired consultants by 40 percent by the end of their first year of work (Bell, 2021). This will be achieved through providing tools, information, and supports for the new hire to receive feedback and build strong networks with subordinates and peers (Bell, 2021).

Program Length

The traditional onboarding program adopts a one-time, one-stop approach, where, over the first few days or weeks of work, the employee is given loads of data and information on the company procedures and policies, and then left to find their way around (Sims, 2013). However, there are those who contend that this approach often results in problems related to information overload among new hires (Sims, 2013; Bell, 2021). A more effective onboarding program takes on a phased approach, enabling the new hire to socialize and build networks with those who mentor, coach, and teach them, as well as with other new employees (Sims, 2013). According to Bell (2021), effective onboarding programs are adapted and designed to connect with new hires before they report, extending over the first day at work, to well over their first year. Thus, the onboarding program for the new consultants will run for one year and will be subdivided into five phases. The first phase will cover activities prior to their physical reporting, the second will cover activities for the first day, the third will cover activities for their first month, the fourth will cover activities for the first quarter or 90 days on the job, and the final phase will cover activities for their first year (Sims, 2013).

Program Location

The onboarding program will take place at the company premises. Onboarding employees within the company premises is advantageous as it provides an opportunity to interact with their colleagues and to experience what they learn firsthand (Bell, 2021). For instance, they are able to observe aspects of the organizational culture, such as how employees relate with each other, during the onboarding exercise, which makes learning more practical. At the same time, holding the onboarding program at the company helps minimize costs as it eliminates the need to hire conference facilities elsewhere. The first week will be dominated by the orientation workshop, which will take place at the companys conference hall (Cordiner, 2017). The manager in charge of training will take steps to ensure that the room has comfortable chairs, with swivels and wheels, that the air conditioning systems are working, and there is sufficient lighting to intensify the learning atmosphere. According to Cordiner (2017), learning is more effective if the training venue fosters a learning atmosphere and is conducive to learners needs.

Onboarding Program Description

Program Elements

An onboarding program is made up of several elements that lead up to the new hires full integration into the company. Lauby (2018) advises that integration should not just begin on the day a new hire reports. In their view, effective integration processes begin way before the company advises a vacant position for suitable candidates to apply (Lauby, 2018). The author posits that, thus, an effective onboarding program comprises of four elements: Recruitment, Pre-boarding, Orientation, and Onboarding (Lauby, 2018). A complete visual representation of the onboarding program summarizing the activities in each element and the persons responsible, is attached as an appendix to this text.

Recruitment is the first element of the onboarding process. The company expresses its new hire expectations in the way it designs its career website and the way it describes the specific role and organizational culture (Lauby, 2018). During the recruitment, the managers in the human resources division and the department...

…how well the training helps in realizing intended business outcomes (Kirkpatrick & Kirkpatrick, 2016). Here, the onboarding programs effectiveness will be assessed using two key performance indicators: time-to-productivity and first-year retention rates among newly-hired business consultants. These will be measured using end-year surveys that will be carried out annually. The survey will look at the proportion of consultants hired in a given year who celebrated their one-year anniversary at the company and the calculated time-to-productivity ratio, which measures the time a consultant takes to reach full productivity. Survey findings will be compared to those of past years to determine whether there has been improvement as a result of the onboarding program.

Estimated Cost of Program Development and Implementation

The total cost of developing and implementing the program is estimated at $41,500, detailed as follows. The company would first need to replace the existing HRIS system to enhance convenience for new hires and minimize disruptions. The estimated cost of a new HRIS system is $10,000 to cater for the companys 75 employees. The training programs already exist and hence, no cost would be incurred in purchasing new ones. However, the company could hire a consultant at a daily rate of $300 for 5 days (total $1,500) to adapt the existing training manuals to suit the current business needs. Since the program is to be implemented within the company premises, no conference-related or facility costs will be incurred. At the end of the year, the company could engage a consulting firm to conduct a survey to assess the effectiveness of the onboarding program at the results level as per the Kirkpatricks framework. Outsourcing this service would lend credibility to the survey findings and would cost approximately $30,000 since it would only target consultants hired in the course of the given year.

References

Bell, T. (2021). Onboarding: improving employer and employee relations. Certified Public Manager Applied Research, 2(1), 1-8.

Cordiner, S. (2017). The theory and principles of creating effective training courses: What to do before creating your course. Maintraining Pty Limited.

Kirkpatrick, J. D., & Kirkpatrick, J. K. (2016). Four levels of training evaluation. Association for Talent Development.

Knowles, M., Holton, E. F., Swanson, R. A., & Robinson, P. A. (2020). The adult learner: The definitive classic in adult education and human resource development. Taylor & Francis.

Lamb, J. (2011, May). Onboarding: Your next value-add? Employee Benefit Advisor, 9(5), 58-59.

Lauby, S. (2018). A roadmap for onboarding managers. Management Development, 35(1806), 1-17.

Naff, K. C., Riccucci, N. M., & Freyss, S. (2016). Personnel management in government: politics and process (7th ed.). CRC. Press.

Sims, D. M. (2013). Creative onboarding programs: tools for energizing your orientation programs. McGraw Hill.

Spector, P. E. (2021). Industrial and organizational psychology: Research and practice. John Wiley & Sons.

Walker-Schmidt, W., Kaul, C., & Papadakis, L. C. (2022). Onboarding effects on engagement and retention in the IT sector. Impacting Education, 7(4), 8-15. https://files.eric.ed.gov/fulltext/EJ1369047.pdf

Walker-Schmidt, W. (2021). Onboarding effects on employee engagement and retention: A mixed-methods study exploring extending onboarding and its impact on long-term employment and retention. Baylor University Thesis. https://baylor-ir.tdl.org/items/325a19bc-7653-4f7a-977b-8192ddc2cc08/full

Appendices

The Proposed Onboarding Program for New Consultants

Action

Responsible Person/Group

Time Period

Prior to the New Employees Reporting

Mail the employee a signed Welcome letter outlining the orientation process and informing them where to park and how to access the premises on the reporting day.

HR Division/Staffing Manager

1 day

Mail the employee a CD or DVD outlining the available employee benefits

HR Division/Staffing Manager

1 day

Activate the employees work set up (provide office supplies, set up the phone number and voicemail system, set up the computer and connect it to the shared printer, providing passwords for access to the computer, emails, and intranet).

IT representative

1 day

Getting the employee set up on the payroll system

HR Division/Staffing Manager

1 day

Activation of internal security processes (staff ID, temporary badge, parking permit)

HR Division/Staffing Manager

1 day

The New Employees First Day

Greet the new employee and guide them to get access into the buildings security system

HR Division/Staffing Manager

1 hour

Issue the new employee the onboarding roadmap showing what they will be taking part in

HR Division/Staffing Manager

20 minutes

Take the new employee for a facility tour and meting of their peers

HR Division/Staffing Manager

1 hour

Guide the new employee in selecting a benefits package

HR Division/Staffing Manager

30 minutes

Guide the new employee to complete the necessary forms and documentations

HR Division/Staffing Manager

1 hour

Guide the employee to access the computer on their desk, email, and company intranet

IT representative

1 hour

Assign a buddy or peer mentor to offer additional support to the employee such as taking them to lunch and other ways to help them feel welcome and settle in

HR Division/Staffing Manager

Provide basic training on safety such as acquainting them on fire assembly points and the location of fire extinguishers

HR Division/Staffing Manager

40 minutes

The New Employees First Week

Organize a meeting for the employee to meet the company executives and division managers

HR Division/Staffing Manager

2 hours

Organize and administer the orientation workshop (content based on the 4 Cs of onboarding Compliance, Clarification, Culture, and Connections)

HR Division/Staffing Manager

Respective Division Manager to whom the new hire is attached

2 days

Provide basic training specific to the job (guidance to access the project management and expense reporting software)

Division Manager

1 day

Introduce the employee to the projects they will be handling (delivery of lecture and project…