A Smart Guide to Onboarding New Employees at a Business with <50 Team Members & Making Them Want to Stay
Know this: your small business is important to the U.S. economy because it creates jobs and offers the specific opportunity for un-traditional employees to support themselves and their families, plus gain experience and valuable skills. It’s also important because The Small Business Association reports that small businesses (firms with 1-499 employees) continue to add more net new jobs than large businesses. Through the first three quarters of 2014, small businesses added 1.4 million net new jobs.
In the lower tier of small businesses (50 employees and under), very often there is not an onboarding process that translates into “Welcome, I am glad that you are here, this is who we are, and this is how we do the business.” In my line of work, I am usually contacted because turnover at these types of venues can be high, with a retention rate averaging eight months or less.
So my first conversation with an owner or manager may include the phrase “Walk me through your hiring/onboarding process.” Why? Because it does not matter if the bulk of your employees is comprised of family members, long-time acquaintances or new hires, the hiring process is integral to the retention strategy – not to mention that, in every relationship, everyone wants to know “what’s in it for me.” And from a small business owner’s perspective, the goal is to acquire top talent, provide quality training, and maximize the training time — along with the skill and knowledge the employee has brought with them.
The good part? The creativity that a small business can weave into an onboarding process is unlimited! A robust onboarding program creates employee/employer engagement immediately; engagement spurs employee loyalty and commitment; and loyalty and commitment spurs increased employee retention. This is an important “domino effect” because whether the business is one outlet or a chain of hair salons or clothing boutiques, financial loss is often attributable to repeated turnover of workers.
Small Biz Onboarding 101: A Guide to Gaining Great Staff
There are several components of an effective onboarding program that should help with worker satisfaction and retention. First up:
The Hiring Process
The hiring process should include a detailed dialogue providing clear expectations of the following:
- Job duties
- General expectations about performance
- Working hours
- Compensation
- Work appearance (including dress code or uniform requirements)
- Policies and procedures
- Products and services
This sounds like a tedious task, but nothing in the onboarding program should be delivered as such, and, in fact, the facilitator has the ability to add critical value in this process. For example: when discussing the concept of work appearance, it could be explained how the required uniform adds significance to the role/ job experience – or how its colors provide particular meaning (re: branding, etc.) for customers.
Vision/Mission/Values
Some points to consider for a hiring partner/facilitator to consider, ahead of any meeting with workers:
- How do you do business?
- What is being solved with the product/service you provide?
- How does each positon within the company contribute?
Figuring out the answers to these questions allows the facilitator to present the heart of the business, including the organizational culture. As for the question of how a particular position supports the vision/mission? Example of a great answer: “The role you play as an ‘Intake Representative’ will support the company vision to provide an optimum experience and to differentiate our business within the industry – while also permitting our company to outfit twenty percent of the 200,000 people in our target market.”
Note: This is also where a rewards program can be presented in terms of “Your role is so critical that we offer XYZ…” There is always a great incentive to offer a rewards program; money is not the only motivator for many applicants.
Leadership
The employee should be engaged with everyone who has decision-making responsibilities. Each leader should also take time with the new hires and at the very least present/explain:
- Who they are
- How their responsibilities contribute to the organization’s success
- How the role for which the employee(s) being hired intersects with their decision-making role
- Why they work for the organization
Even if this meeting comprises only two or three or four people in total, it’s important to always have a consistent process. In fact, to ensure that all components of the onboarding program are included/followed, create a checklist that is used every time.
Why The Onboarding Process is so Important
CBS Money Watch reports that turnover costs are, on average, 16 percent of annual salaries for lower- paying jobs, and up to 30 percent for higher paying jobs. So, whether your business employs five employees or 25 employees, do not miss this critical step of onboarding that will contribute to sustainable success. With current technology, an onboarding program can be as creative as possible, using, for instance, the latest app, Periscope or Facebook Live.
The concepts of creativity, engagement and authenticity in your onboarding program are essential. So be creative, be YOU, and be the BOSS that you are! Differentiate your small business as the small business of choice, and watch how much your ability to draw and retain employees improves.