4 Bottom Line Reasons to Improve Your New Employee Orientation

Posted by Donnelly Effect on March 03, 2015

Employee Onboarding, New Employee Orientation

4BottomLineReasonstoImproveYourNewEmployeeOrientation

Have you considered how implementing a more effective New Employee Orientation program could improve your bottom line?

Definition: New Employee Orientation, or NEO, is the process through which new employees become introduced to the social, cultural and performance norms and expectations of their new organization.

Four or more hours of NEO reduces employee turnover by an average of 20%.  Reduced turnover is one of the myriad bottom line benefits resulting from effective NEO; a vital element of the employee onboarding process.  While most organizations will have employees complete the necessary paperwork and introduce them to their work space or location as their onboarding, the most effective and successful onboardings include a well-designed NEO.   

Here are 4 of the most basic benefits of executing a world-class new employee orientation program:

1. Increases Employee Retention  Research indicates that employees are 58% more likely to stay with an organization for 3 years or longer if they have experienced a structured onboarding program.  Not only should the onboarding be structured and deliberate, it should include Day 1 and Day 2 of NEO.  NEO is the opportunity for for new employees to connect emotionally - by sharing the organization's story.  If an employee believes in the mission and heritage, their behaviors will reflect these beliefs.  And when employees believe in and are connected to an organization emotionally, they’re more likely to stay, be more engaged and have greater commitment (even if their job is really hard and their supervisor is not necessarily supportive). 

Increased retention = Reduced turnover costs

2. Strengthens Organizational Culture   World-class NEO serves to sustain and reinforce all of the best aspects of your culture. Assuming that your organization has shaped a positive organizational culture, it is imperative that each new employee (especially when there are large numbers of employees entering the organization) share in the same belief system and level of commitment to the organization as those employees who have shaped it. Because whether you are hiring 500 or 1, each new employee has the potential to either strengthen or dilute the culture.  When cultural norms are shared during NEO and reinforced throughout the employees' tenure, the culture is collectively strengthened.  

A strong positive organizational culture = a healthy, profitable organization

3. Sets Crystal Clear Expectations  NEO is the platform to share your organization's high behavior expectations right out of the gate.   If we don’t set those expectations up front, we set our managers and employees up for resentments in the future.   Communicating expectations and gaining commitment at the "get go" increases chances of compliance to those expectations.  Additionally, a well designed and structured orientation process ensures consistent expectations are shared and celebrated with all new hires.  This allows Human Resources personnel to avoid the dreaded, “they never told me that” syndrome.

Lower behavior infractions = Reduced HR claims spending

4. Improves Customer Experience   Highly effective NEO drives behaviors that improve the interaction between your customer and your employees.  World-class NEO's include sharing with each and every new hire- regardless of position, the "why" behind customer experience, the "how" we do it, and the "what's" expected.  When an organization and it's employees have a well defined concept of who they are, who they serve, and why they do it, they are better equipped and committed to delivering on that promise.  Happy, engaged employees begets happy, engaged customers.  

Happy, engaged customers return and tell their friends = Increased bottom line

Executing a well designed, effective NEO will improve metrics tied directly to your bottom line. Yes, it's as simple as that.

new employee orientation employee onboarding program checklist

For more on welcoming and onboarding new-hires, check out these resources:

ABOUT DONNELLY EFFECT: With over 20 years of Disney leadership experience, Mike Donnelly, Chief Experience Officer (CEO) of Donnelly Effect shares his insights on Talent Selection and Hiring, Employee Onboarding, Customer Experience, Workplace Culture and Leadership- among others.  Donnelly Effect is home of the exclusive "World-Class Workshop" series and offers consulting services and keynote addresses to audiences of all sizes and industries. Since 2007, Mike Donnelly has been a contracted Disney Institute Facilitator, delivering Disney training to audiences across the United States. 

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Customer experience directly affects a consumers intent to return and intent to refer: It is the lifeline and sustainability of your organization.  LEARN MORE

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