How can we improve onboarding of new employees?
Every year, 500,000 individuals have their first day at a new job in Denmark. Newly employed normally have a high level of motivation, but only 20% of Danish corporations see themselves as sufficiently equipped to onboard new employees. And the numbers tell the whole story: 30% resign within 3 years, and 22% of these quit before 45 days have passed.
On average, it takes 100 days for knowledge workers to become profitable. If this number is reduced to just 90, the result is a cost reduction of 1 million DKK for every 100 new employees.
Moment Professionals has seen a business potential in helping corporations onboard new employees more efficiently.
We helped them develop the business concept, which after just 6 months has led to the launch of new onboarding products and the establishment of the corporation Onboarding Group.
What is onboarding?
3-minute intro to the process
Our approach is based on 3 central principles:
- Hypothesis-driven and experimental: Our work is based on hypotheses and assumptions on how onboarding of new employees works and how it can be improved.
- Design-driven: We apply Design Thinking principles and Service Design methods.
- Problem and purpose-oriented.
Onboarding Model as a tool for dialogue and management
The concept for the Onboarding Model is based on 6 parameters that are all significant to the employee’s performance and well-being:
The sprint process was inspired by Google Ventures Design Sprint. We conducted 5 sprints of each 10 days to develop 4 new products.
Real Life Tests
Based on the Onboarding Model we have developed 4 products:
- Survey Tool: The employee evaluates himself and the employer evaluates the employee.
- Dialogue Tool: The output from the Survey Tool is used in a dialogue between the employee and the employer. A game board with the 6 parameters works as the focal point for the conversation.
- Onboarding Index: The corporation gets an Onboarding KPI. A single number, which describes the corporation’s efficiency in onboarding new employees. The number is comparable within industries.
- Online Dashboard: All data is collected in an online dashboard, which helps the corporation monitor development.
ONBOARDING IS BIG BUSINESS!
Good onboarding increases job satisfaction, provides motivation and secures a good start for the employee. This not only makes good sense for the employee - it's also good business for the company and for the society as a whole.
If we could succeed in increasing effectivity in onboarding with as little as 10%, the annual savings across companies would be 5 billion DKK.
For Moment Professionals, the design process has caused great confidence in the business potential of onboarding. A brand-new company called Onboarding Group has been established with external investors. The first 4 employees in Onboarding Group has already been hired.
500 leaders participated in the launch event for the new onboarding tools at Bremen Theater in December 2015.
55 client meetings
55 meetings were arranged with potential clients from top-500 companies in Denmark.
7 deals were signed during the first month.
49 Net Promoter Score
The onboarding tools are rated with an average Net Promotor Score of 49.
”The design process forced us to revise our hypothesis of the value proposition. We were driven to see new possibilities.”
CEO, Onboarding Group
”We didn't know what to expect from the design process, but we built a collaboration based on trust really fast.”
COO, Onboarding Group
“Through this design partnership we have created an opportunity to take market shares and build a new company.”
Morten Thune Højberg