SHRM Survey Findings: Onboarding Practices April 13, 2011

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 Key Findings Are employers providing onboarding programs and practices to their new hires? More than 80% of organizations reported that they have either formal (i.e., written, documented, standard) or informal onboarding programs and/or practices. At what point does onboarding begin for new hires, and how long does it last? Nearly one-third of organizations begin their onboarding activities upon offer acceptance, and an additional one-third begin onboarding on the new hire’s first day on the job. Almost one-half of organizations reported that the total cumulative duration of their onboarding programs for most new hires is less than eight days. What are the most crucial onboarding practices for ensuring the success of newcomers? The vast majority of organizations indicated that providing communication, training and resources is extremely important for the successful adjustment of new hires. What prevents organizations from formally offering more onboarding activities? More than one-half of organizations reported that time constraints and insufficient HR staffing are barriers to offering more formal onboarding activities. 2

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 Does your organization have formal (i.e., written, documented, standard) or informal onboarding practices and/or programs? 3 Note: n = 475. Multinational organizations (92%) were more likely than organizations with U.S.-based only operations (78%) to report that they had formal onboarding practices and/or programs. Organizations with multiple units in the United States (85%) were more likely than single-unit U.S. organizations (71%) to report that they had formal onboarding practices and/or programs.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 How many different onboarding practices does your organization’s HR department formally provide in each of the following categories? 4 Note: Percentages may not total 100% due to rounding. Data sorted in ascending order by “no formal practices” category.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 How many different onboarding practices does your organization’s HR department formally provide in each of the following categories? Differences Based on Organization Staff Size Differences Based on Organization’s Operations Location Differences Based on Union Status Communication efforts: Practices that facilitate communication with newcomers (e.g., one-way provision of information as well as opportunities for two-way dialogue): More than 5 formal practices Multinational operations (12%) > U.S.-based only organizations (2%) Resources: Practices that make materials or assistance available to newcomers should they take the initiative to seek out those resources: 1 formal practiceNon-union (33%) > union (17%) More than 5 formal practices Multinational operations (12%) > U.S.-based only organizations (3%) Welcoming activities: Practices that provide opportunities for newcomers to meet and socialize with other organizational members and/or celebrate their arrival: 4 to 5 formal practices 25,000 or more employees (31%) > 1 to 99 employees (3%), 100 to 499 employees (4%) A guide: Practices that provide a personal guide for newcomers (e.g., a buddy, mentor or welcome coordinator): 1 formal practiceNon-union (44%) > union (27%) 5 Comparison by Selected Organizational Demographics Note: Blank cells indicate that there were no significant differences in this category.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 To what extent is follow-up or monitoring done to make sure formal onboarding activities or programs are actually happening as designed in your organization? 6 Note: n = 320. Publicly owned for-profit organizations reported greater average degrees of follow-up or monitoring than privately owned for-profit organizations.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 In general, when do your onboarding programs begin? 7 Note: n = 323. Percentages may not total 100% due to rounding.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 In general, what is the total cumulative duration of your onboarding program for most newcomers? 8 Note: n = 322. Percentages may not total 100% due to rounding. Nonprofit organizations (14%) and government agencies (14%) were more likely than privately owned for-profit organizations (2%) to report that the total cumulative duration of their onboarding programs depends on a number of factors.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 Which of the following areas are specifically addressed by your organization’s onboarding programs? 9 Note: n = 307. Percentages do not total 100% due to multiple response options.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 Does your organization approach onboarding differently for different types of employees? YesNo Management vs. nonmanagement 63%37% Job or job family (e.g., KSAs, competencies, job requirements) 51%49% Employment status (e.g., full time vs. part time vs. contingent employees) 51%49% Employees vs. board members 49%51% Entry level vs. mid level vs. senior level 47%53% Recruitment source (e.g., new hires vs. internal transfer vs. re-hire vs. employees from a merger/ acquisition) 41%59% Functional or business unit 37%63% Hourly vs. salaried 30%70% Geographic location (e.g., different regions or countries) 29%71% New-hire personal characteristics (e.g., experience, expectations, potential, learning style) 23%77% Union vs. non-union 14%86% Other 7%93% 10 Note: n = Table sorted by “yes” column.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 Does your organization approach onboarding differently for different types of employees? Differences Based on Organization’s Operations Location Differences Based on Union Status Differences Based on Industry Differences Based on Organization Sector New-hire personal characteristics (e.g., experience, expectations, potential, learning style) Multinational operations (26%) > U.S.-based only organizations (10%) Employees vs. board members Union (65%) > non-union (46%) Government (71%) > privately owned for-profit (40%) Geographic location (e.g., different regions or countries) U.S.-based only organizations (50%) > multinational operations (23%) Publishing, broadcasting, other media (67%) > health care and social assistance (8%) Publicly owned for-profits (44%), privately owned for-profits (33%) > nonprofits (11%) Hourly vs. salaried Manufacturing – other (53%) > health care and social assistance (10%) Publicly owned for-profits (37%), privately owned for-profits (39%) > nonprofits (15%) Union vs. non-union U.S.-based only organizations (23%) > multinational operations (9%) Union (48%) > non-union (5%) 11 Comparison by Selected Organizational Demographics Note: Blank cells indicate that there were no significant differences in this category.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 How has onboarding of new employees changed over the past five years in your organization? Strongly disagree DisagreeAgree Strongly agree Onboarding is longer and/or more intensive than before, with more done to help facilitate the adjustment of newcomers. 3%23%43%30% We use onboarding more now as a key part of our retention strategy. 4%24%48%24% Onboarding has become more engaging, interactive and individualized. 5%27%48%20% We now start onboarding earlier, with more attention to recruitment, providing information to ensure fit and set expectations. 5%34%44%17% Onboarding has a longer-term focus than before, with more emphasis placed on career paths, development and advancement opportunities early on in the process. 6%37%42%16% Onboarding has become much less personal, with greater use of electronic communications and delivery of material. 13%59%21%7% Onboarding has not changed much in our organization over the past five years. 25%48%22%4% Onboarding is shorter than before, with more responsibility given to newcomers to figure things out for themselves. 29%57%10%4% Onboarding has a shorter-term focus than before because expected tenure has declined. 20%69%10%2% 12 Note: n = Percentages may not total 100% due to rounding. Table sorted by “strongly agree” column. Excludes responses of “not sure/don’t know.” Compared with smaller organizations (those with 1 to 2,499 employees), organizations with 2,500 to 24,999 employees reported greater average levels of agreement that they use onboarding more now as a key part of their retention strategy. Compared with multinational organizations, organizations with U.S.-based only operations reported greater average levels of agreement that onboarding is shorter than before, with more responsibility given to newcomers to figure things out for themselves.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 To what extent is feedback collected from newcomers or their supervisors for the purpose of evaluating and revising your onboarding activities? 13 Note: n = 283. Compared with privately owned for-profit organizations, publicly owned for-profit organizations and nonprofit organizations reported a greater average extent of evaluation of onboarding activities.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 In your opinion as an HR professional, how important are the following activities for the successful adjustment of newcomers and for facilitating their performance, engagement and retention? 14 Note: Percentages may not total 100% due to rounding. Compared with HR professionals from organizations with U.S.-based only operations, HR professionals from multinational organizations reported greater average importance for onboarding activities that involve training.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 In your opinion as an HR professional, when are the following activities most useful for newcomers? 15 Note: Percentages may not total 100% due to rounding.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 In your opinion as an HR professional, when are the following activities most useful for newcomers? Differences Based on Organization’s Operations Location Differences Based on Union Status Differences Based on Organization Sector Differences Based on Region Providing resources: Practices that make materials or assistance available to newcomers should they take the initiative to seek out those resources: During recruitment Nonprofits (15%) > privately owned for-profits (4%) Post hire, but before start Multinational operations (36%) > U.S.-based only organizations (18%) Nonprofits (41%), government (45%) > publicly owned for-profits (15%) Later in 1 st week Northeast (27%), Southeast (19%), Midwest (23%) > West (3%) Providing training: Practices that reflect planned efforts to facilitate the systematic acquisition of skills, behaviors, knowledge by newcomers During recruitment Government (6%) > privately owned for-profits (1%) On 1 st day Non-union (44%) > union (28%) Weeks 2 to 4 Publicly owned for-profits (26%), government (29%) > privately owned for- profits (10%) Welcoming activities: Practices that provide opportunities for newcomers to meet and socialize with other organizational members and/or celebrate their arrival During recruitment U.S.-based only organizations (5%) > multinational operations(1%) On 1 st day Publicly owned for-profits (68%) > privately owned for-profits (45%), nonprofits (43%) 16 Comparison by Selected Organizational Demographics Note: Blank cells indicate that there were no significant differences in this category.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 Please rate the following areas according to their importance for newcomers to learn in order to facilitate their performance, engagement and retention. Very unimportant Somewhat unimportant Somewhat important Very important The knowledge, skills and abilities needed to successfully perform required job tasks 9%1%6%84% The formal workplace rules, policies and procedures 8%1%11%80% What the organization offers to employees in exchange for their contributions, including pay, benefits, development opportunities and opportunities for recognition 7%2%16%74% The organization’s current product/market mix, competitive position, mission, goals and strategies 8%5%21%67% The formal structure, including the physical layout and where formal responsibility and authority is assigned 5% 29%61% The unique technical language, acronyms, slang and jargon used at work 7%4%28%60% The organization’s culture, including values, customs, symbols and myths 6% 32%56% Information about others necessary to establish effective working relationships (including the learning of colleagues’ expectations, needs, working styles, etc.). 8%4%35%53% The informal rules, norms and procedures of the workplace. 5%2%44%49% The informal power structure, including where actual control of resources, decision- making and influence over decisions reside 5%9%40%46% The organization’s history, traditions, origins and changes that have occurred. 3%13%53%31% Information about others necessary to develop a network of social relationships at work (e.g., common interests, family, etc.). 7%27%48%18% 17 Note: n = Percentages may not total 100% due to rounding. Data sorted by “very important” column.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 Please rate the following areas according to their importance for newcomers to learn in order to facilitate their performance, engagement and retention. Differences Based on Organization Staff Size Differences Based on Organization Sector The organization’s history, traditions, origins and changes that have occurred. Nonprofit > government The organization’s culture, including values, customs, symbols and myths. 2,500 to 24,999 employees > 100 to 499 employees 18 Comparison by Selected Organizational Demographics Note: The table represents differences in average reported importance, in which larger numbers indicate greater average importance. Blank cells indicate that there were no significant differences in this category.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 Please rate the following areas according to the level of difficulty for newcomers to learn on their own, aside from being covered in an onboarding activity. Very difficult Somewhat difficult Somewhat easy Very easy The formal workplace rules, policies and procedures 7%25%40%28% What the organization offers to employees in exchange for their contributions, including pay, benefits, development opportunities and opportunities for recognition 9%23%42%26% The organization’s history, traditions, origins and changes that have occurred 8%27%42%24% The formal structure, including the physical layout and where formal responsibility and authority is assigned. 6%27%45%22% Information about others necessary to develop a network of social relationships at work (e.g., common interests, family, etc.). 4%26%55%16% The organization’s culture, including values, customs, symbols and myths 7%32%45%16% The organization’s current product/market mix, competitive position, mission, goals and strategies 12%38%36%13% The informal rules, norms and procedures of the workplace 7%37%46%10% The knowledge, skills and abilities needed to successfully perform required job tasks 13%48%32%8% The informal power structure, including where actual control of resources, decision- making and influence over decisions reside 15%46%33%6% Information about others necessary to establish effective working relationships (including the learning of colleagues’ expectations, needs, working styles, etc.) 12%53%29%5% The unique technical language, acronyms, slang and jargon used at work 17%50%28%4% 19 Note: n = Percentages may not total 100% due to rounding. Data sorted by “very easy” column..

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 Please rate the following areas according to the level of difficulty for newcomers to learn on their own, aside from being covered in an onboarding activity. Differences Based on Organization’s Operations Location Differences Based on Union Status Differences Based on Organization Sector The informal rules, norms and procedures of the workplace Non-union > union The organization’s current product/market mix, competitive position, mission, goals and strategies Government > publicly owned for-profits, privately owned for-profits What the organization offers to employees in exchange for their contributions, including pay, benefits, development opportunities and opportunities for recognition Multinational operations > U.S.-based only organizations 20 Comparison by Selected Organizational Demographics Note: The table represents differences in average reported importance, in which larger numbers indicate greater average importance. Blank cells indicate that there were no significant differences in this category.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 If your organization does not formally offer as many onboarding activities as you think it should, what are the reasons more activities are not offered? 21 Note: n = 226. Excludes responses of, “N/A, my organization formally offers all of the onboarding activities that we need.” Percentages do not total 100% due to multiple response options.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 If your organization does not formally offer as many onboarding activities as you think it should, what are the reasons more activities are not offered? Differences Based on Organization’s Operations Location Differences Based on Organization Staff Size Differences Based on Organization Sector Financial constraints Nonprofit (49%) > privately owned for- profits (27%) Anticipated breakdowns in execution U.S.-based only organizations (29%) > multinational operations (14%) 2,500 to 24,999 employees (35%) > 1 to 99 employees (8%) Too few new hires to fully develop formal onboarding activities 1 to 99 employees (56%) > 100 to 499 employees (26%), 500 to 2,499 employees (25%), 2,500 to 24,999 employees (16%) 22 Comparison by Selected Organizational Demographics Note: Blank cells indicate that there were no significant differences in this category.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 Demographics: Organization Industry Industry Health care, social assistance (e.g., hospitals, clinics)14% Manufacturing–other12% Services–professional, scientific, technical, legal11% Financial services (e.g., banking)7% Educational services/education6% Government/public administration—federal, state/local, tribal5% Insurance4% Retail/wholesale trade4% Consulting3% Publishing, broadcasting, other media3% Transportation, warehousing (e.g., distribution)3% High-tech3% 23 Note: n = 320. Percentages do not total 100% due to rounding.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 Demographics: Organization Industry (continued) Industry Other services (e.g., other nonprofit, church/religious organizations)2% Construction, mining, oil and gas2% Arts, entertainment, recreation2% Telecommunications2% Utilities2% Manufacturing—auto/auto-related2% Real estate, rental, leasing1% Services—accommodation, food and drinking places1% Biotech1% Pharmaceutical0% Other7% 24 Note: n = 320. Percentages do not total 100% due to rounding.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 Demographics: Organization Sector 25 Note: n = 316. Percentages do not total 100% due to rounding.

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 Demographics: Organization Staff Size 26 Note: n = 256

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 Demographics: Other 27 Note: n = 324 U.S.-based operations79% Multinational operations21% Single-unit company: A company in which the location and the company are one and the same 28% Multi-unit company: A company that has more than one location 72% Multi-unit headquarters determines HR policies and practices 46% Each work location determines HR policies and practices 1% A combination of both the work location and the multi-unit headquarters determine HR policies and practices 53% Is organization a single-unit company or a multi- unit company? Are HR policies and practices determined by the multi-unit corporate headquarters, by each work location or both? Does the organization have U.S.-based operations (business units) only or does it operate multinationally? Note: n = 323 Note: n = % of organizations indicated that employees at their work location were unionized. Note: n = 319

SHRM Survey Findings: Onboarding Practices | ©SHRM 2011 SHRM Survey Findings: Onboarding Practices Response rate = 18%. Sample composed of 482 HR professionals randomly selected from SHRM’s membership. Margin of error is +/- 5%. Survey fielded November 29 - December 20, This poll was developed in conjunction with Howard Klein, Ph.D., Chair, SHRM Foundation. 28 Methodology For more poll findings, visit: Follow us on Twitter: