It’s hard to believe that today a staggering 50% of high level executives exit their posts in the first year, leaving companies flailing in ongoing transition and growth, and losing money. They don’t catch up and it hurts the company as a whole. Moreover, the cost of losing these employees and hiring new ones can be three times the salary of one position! So the question becomes “why aren’t companies choosing the lower cost of investing in a successful on-boarding program, especially in this economy, to ensure their employees’ success with the organization?”
On-boarding is a program that companies have implemented for decades amongst younger, lower level employees with great success. However, over the years these same companies have failed to offer a similar program for upper level executives, instead believing that their years in professional environments would assist in their assimilation, leaving executive on-boarding success “to chance”.
It is projected that some 25% of Fortune 500 managers changed jobs each year and that 6.2 months is the “break even” point for new managers (Monster.com Survey, 2007). However, new employees who completed a structured on-boarding program were 58% more likely to still be with that organization in three years.
Sales/Leadership Coach and Founder of Sage Portfolio Group (www.SagePortfolioGroup.com), Melanie Parish says that comprehensive executive on-boarding programs can make the difference in companies that want to implement change and growth with new hires who will have longevity. She comments that by ignoring the importance of on-boarding that American companies are taking big steps backwards, and if they’re going to come out of this recession as a strong business with great leadership, then they need to rethink how they transition executives into the company.
“Today offers a critical view of where America’s top companies could be when the economy sorts itself out,” said Parish. “Companies cannot afford the expense of continuously hiring and losing top executives, from both a financial and performance perspective. They will keep chasing their tails and taking steps back instead of moving forward with energy, effectiveness and efficiency.”
The impact of on-boarding goes deep into overall company success. When executives are on-boarded and mentored in learning the organization’s environment and personalities, they are more effective in making things happen for the company.
“Executives leave because they don’t feel like they’re getting anywhere,” said Parish. “If they don’t understand the environment in which they’re asked to perform how can they be expected to transition in and do the job in which they’ve been hired to do?” In the end, Parish adds, employees become frustrated with politics and unsuccessfully navigating red tape that they begin looking for other positions. One where they feel confident in their ability in making a difference for the company. “Really it’s a two-step approach to success for the executive and for the company.”
Parish says that in order for companies to retain top talent, let them shine and save money, they should consider the following tips for successful on-boarding:
• Every executive should have the same thorough job description as other employees.
• Have a facilitated conversation about expectations between the hiring manager, executive and the direct manager of the new executive (an on-boarding coach can do this).
• State clear benchmarks and goals set for the first three, six and 12 months.
• Assign someone to assist the new executive in navigating organizational culture and established business practices within the organization (often the on-boarding coach acts in this role).
• Allow the transition into the company for the executive to happen slowly before encouraging them to make big changes.
• The executive should be introduced both in person and by email by their supervisor to everyone in the organization along with a list of goals for their position.
• The executive should sit down and learn about the culture, meet people for lunch and ask questions before making changes. We call it “worshipping the local deity.” This will help the executive understand how to navigate company culture to be successful at the position for which they’re hired.
• The executive should be coached, trained and generally brought up to speed on the organizational tools and trainings that have happened in the organization within the last two years. This way they can “speak the language.”
• The executive and his/her supervisor should check in monthly to compare expectations and measurable progress so changes can be made immediately.
• Hire a coach for the executive so they have a safe place to work through challenges or vent about the new job.
“When a hiring manager or top level company executive really sits down to think about it, on-boarding seems like common sense,” Parish says. “Their goal is for the company to be successful and grow, especially in this economy. Why wouldn’t they make sure that the culture they have designed is welcoming and encouraging of employee success?”
Parish adds that a large number of companies choose to outsource their on-boarding programs to companies like hers, Sage Portfolio Group. “The dynamic of corporate culture and the work/life balance goals of employees is in major shift, “says Parish. “The companies that see that and invest in on-boarding now are not only going to retain more of their employees but they will come out of the recession stronger….they might even have grown during this time.” She adds that successful on-boarding programs also create more employee loyalty to the company because they are carefully brought “into the family”.
Sage Portfolio Group (SPG) is an innovative leadership and development company that works with organizations to improve performance in leadership and sales. Its unique approach provides integrated solutions that have proven to work, including sales and leadership training, executive coaching, hiring solutions, talent audits, team optimization, and strategic planning. This portfolio of solutions can be used as the leverage organizations need to move to the next level. SPG’s process respects the fundamental tenets of business coaching: a customized approach, solutions that are developed in partnership with the client, application to real-life situations, practice of skills, and shared accountability for results. Their approach has four key components: Listen, Access, Engage and Evaluate. For more information visit http://www.SagePortfolioGroup.com.
Jennifer Fortney is a freelance writer, small business public relations expert, founder of Cascade Communications (www.CascadeComms.com) and publisher of SmallBizPRMadeEasy.com. She holds a journalism degree from the esteemed William Allen White School of Journalism and Mass Communications at the University of Kansas and spent time writing TV and radio news, sports and arts marketing and as director of radio promotions and marketing.
