36
Retention:

The First 90 Days and Beyond

One of the biggest issues that keep business owners and leaders up at night is finding and hiring talent. Hiring people takes time. Not only does it require precious hours for leaders to go through applications and interviews to fill a position, it takes time to get a new employee fully acclimated to a job. Also, hiring people takes money. There’s a cost to bringing in interviewees. It is expensive to put new people on payroll and benefits and to get them up to speed.

So yes, the acquisition of quality people is vital. But what may go unnoticed is the energy needed to get that person off to a great start.

Many business owners and leaders know the risk of losing an employee within the first year, but few may realize just how many employees leave before they’ve even hit 90 days. The statistics range from 20 to 30 percent, and while I’m not sure of the exact number, I’ve seen firsthand in my work with organizations over the years that too many people leave their job before they’ve really even gotten started.

These early departures are both disappointing and costly. What happens when people leave? We’ve established that turnover costs a lot of time and money. But there’s more. When people leave, the remaining employees will likely have to work additional hours. That can lead to burnout and stress on employees and family. And, ultimately, this will negatively impact the customer experience as well.

With a little bit of energy and focus on an employee’s first 90 days, you can lay the groundwork for a productive and engaged employee. Getting really intentional about making sure new hires are getting the things they need and helping relieve anxiety can make a huge difference. (Starting a new job is stressful!) It’s not only a chance to impress the employee, but it’s likely old coworkers, friends, and family will be asking how they like their new job. This gives them a chance to say positive things about your company (and possibly attract additional employees). You have a real opportunity to promote the brand of your company if you can get a few things right.

All of that said, here are some tips to help get new employees off to a roaring start:

  • Don’t oversell the new hire. This is a common mistake. A leader hires someone they feel will be a “superstar” and overhypes them. This does not set the new hire up for success. It shines a spotlight on them and creates a lot of pressure. If they turn out not to be right for the job after all, you might be reluctant to let them go because you don’t want to admit you made a mistake. Existing employees aren’t eager to help the new hire because they resent what a big deal you made about them. Meanwhile, the person knows they aren’t measuring up, which is a painful spot to be in. Don’t go overboard announcing a new hire. (Always put the focus on the team, not the new person.) Make sure they’re open to learning. Be judicious and restrained in praising them. And, of course, if you realize you’ve made a bad hire, it’s far better to admit the mistake early on.
  • Don’t rush the new employee into action. Employees do better if they learn about their employer before they jump into their job. Take time to orient the employee to the history of the organization: why the organization exists, including the mission, vision, and values of the company. Review the standards of behavior and the safety rules. Make sure they understand the roles of people they will be working with, where to go with questions, and what they should expect in the first 90 days. If the employee will be representing a product to customers, take the time to make sure the employee knows the product inside and out.
  • Assign a buddy to train the new person. Pick out a peer to help train the new hire. I have seen these people called a buddy, a preceptor, or a mentor. Whatever you call this person, choose them carefully. Many times, buddies are not prepared for this role. They need to understand the basics of staff development. A new employee naturally tends to compare themselves to the person training them. If that person isn’t empathetic to being a newbie—explaining it took them time to learn everything they know, for example—the new employee often gets scared. They think they may not make it so they quit. This is a big reason for early departures.
  • Make it worth the trainer’s time. While trainers want the new employee to be successful, it’s important to provide some compensation for filling this important role. It doesn’t need to be a huge amount. Pay half of this during the training and withhold half. The other half gets paid out at an agreed upon time (one year is the norm but it varies) if the new employee this person trained is still at the organization and is meeting expectations. This will encourage them to stay engaged.
  • Check in often. This doesn’t just mean the usual “How are you doing?” Be specific and intentional. Make sure they feel wanted, heard, recognized, and are comfortable. And after 90 days, survey the employee about the hiring and on-boarding process, asking about what works and what needs to get better.
  • Celebrate. Have an orientation or on-boarding graduation in which the employee receives a diploma and a small gift. The buddy should also be recognized.

Set the New Employee Up for Success by Showing What Success Looks Like

Of course, new employees want to do a great job. That’s why it’s crucial to let them know exactly what “great” looks like. In Chapter 32 we talk about having job candidates sign a standard of behavior contract even before you interview them. In addition, once you hire a new person, you might consider sharing exactly what you think being a highly effective employee looks like in action. Here is my take on the habits that great employees cultivate:

  • Great employees know what the what is for their boss (and act on it). When an employee knows what matters most to the boss, they can laser-focus on meeting their needs in this area. Let’s say they’ve noticed negativity drives their boss crazy. Once they realize this, they can make an effort to frame their communications with them in a positive way. (See Chapter 22.)
  • They know that the ball is always in their court. Once the boss gives an assignment, they do what they need to do to move it forward quickly. Great employees never let themselves be the hold-up. They check in with the boss regularly on the project so they don’t have to bring it up.
  • When they’re not sure, they ask why. Hopefully, leaders already explain the “why” behind what employees are being asked to do. But if this doesn’t happen, great employees ask rather than assume the worst.
  • They go out of their way to be likeable and make people happy. When employees make a point to be friendly and helpful, they contribute to the “emotional bank account” at work. These deposits have a big impact—and they reduce the pain of the inevitable withdrawals. Coworkers will return the favor and forgive them when they make a mistake.
  • They resolve coworker issues one-on-one. Taking a conflict to the boss, who then must discuss it with their boss, who may then have to get an HR rep involved, is time-consuming and unproductive. Yes, there are times when they have to go through official channels and involve HR, but often an issue with a coworker can be solved with a face-to-face adult conversation.
  • They apologize when it’s called for. All employees make mistakes. It’s what they do afterward—after they’ve dropped the ball or missed a deadline or got caught in the act of gossiping about a coworker—that truly determines their character as employees and coworkers.
  • They do the little extra things that make customers happy. Often, it’s the little things that keep people coming back to their favorite stores, restaurants, or other businesses. It’s the server who knows exactly how they take their coffee or the plant nursery owner who calls to let them know a shipment of their favorite flowering shrubs just arrived. Great employees go the extra mile, without having to be asked (whether it’s in their job description or not).
  • They see complaints as gifts. When complaints are handled well, customer loyalty will skyrocket. Great employees don’t get defensive when customers complain. They know they’re hearing valuable feedback that can help the organization improve its service. They listen, they sincerely apologize, and they take action to make things right.
  • They never blame, finger-point, or badmouth their company or coworkers. These habits are deeply destructive to the company’s image. Everyone needs to be engaged in building the organization’s brand. That means it’s critical to “manage up” their company, its products, and their coworkers with every customer interaction—and when they’re off the clock as well.
  • They appreciate the boss. Employees are often quick to point out what their boss got wrong or didn’t do, but when’s the last time they thanked their boss for a flexible schedule, training or personal development, or creating a positive work environment? It’s easy to take these things for granted, but the praise and gratitude goes a long way.

While these qualities and behaviors may seem like common sense, this isn’t always the case. Most of the time a new employee will appreciate having them spelled out. I find that clarity is always welcome; knowing what’s expected of us always reduces anxiety and helps us make the kinds of decisions that allow us to thrive.

Keeping Your Great New Hires

Employees can usually tell early on what the culture of a company is like and it’s these early impressions that help them decide whether to stay or go. Some may leave in the first 90 days and some may leave later, after they’ve had a chance to find and look for a new job. Focusing on retention is a 365-day-a-year job and on-boarding isn’t a one-time process, but more of a continuous motion.

When a person quits it’s usually not a sudden decision. The actual resignation can start weeks, months, and at times, years earlier. Every day is a day that the leader must focus on retention of employees. If they’re not skilled in retention, they get lots of experience in recruitment.

In a very real way, creating a culture that attracts, engages, and retains the best employees is what this entire book is about. After all, it’s great leaders who create great cultures. So it’s challenging to single out specific practices that impact retention—because everything is intertwined and it all works together. However, I do want to hit a few high spots that I feel positively impact retention:

  • Measure employee engagement and always be working to improve it. There’s a reason this subject is mentioned several times in this book. It’s so important to know how engaged employees are (as discussed in Chapter 19) and to make sure you are working to capture their hearts and minds. Engaged employees are much less likely to leave.
  • Make sure you (and all leaders) are well trained so they can give employees what they want and need. Most people don’t leave their job, they leave their boss. This is why it’s important that all leaders inside their organization are able to make sure employees can answer the following questions with a confident yes:

  • Do I know what’s expected from me at work?
  • Do I have the material and equipment I need to do my work right?
  • At work, do I have the opportunity to do what I do best every day?
  • In the past seven days have I received recognition or praise for doing good work?
  • Does someone at work seem to care about me as a person?
  • Is there someone at work who encourages my development?

  • Show those you supervise that you care for them beyond the workplace. This is preventive retention. Consistently ask questions beyond just “how are you?” A tip I learned years ago from a supervisor is to send birthday cards to your employees’ children. I have done this for years. What does it accomplish? First, I know the names and ages of the children. I know when their birthdays are so when I see the employee I can say something. It is usually the first time this has happened to an employee. I receive nice notes from the children and it is a deposit in the retention “bucket.” Of course, we also send birthday cards to employees.
  • Don’t wait to provide feedback and development conversations. It is all too common for a supervisor to have a development talk once a year. Surveys consistently show employees want development. Say to them, We are committed to your development and want to invest in you. What skill would like to develop? If the employee can’t think of one, ask them to take their time and in the next few weeks you want to meet with them to hear their thoughts. If they are still unsure, bring up your ideas. This again shows caring via the investment in the person. It’s shown over and over again that Millennials in particular put a very high premium on development.
  • Ask, “Is there any reason you would leave here?” On a regular basis include this with such questions as “Whom should I recognize?” and “Do you have the tools necessary to do your job?” Don’t be afraid of this question. It leads to great conversation.
  • Trust the employees and solicit their input. Employee engagement surveys show it is not unusual to see issues listed like communication and teamwork. This is even more likely if some employees are working virtually. Throw this back to the employees. Ask a group or all the employees how they think communication can get better. Same with teamwork. Employees want to be included and their input valued.

How new employees experience those first 90 days is deeply important. You want them to immediately feel at home and excited about the company they have joined. And smart owners and leaders know that those three months or so are just the beginning. There is nothing more important than creating an organizational culture that engages, challenges, and even delights employees. When employees are happy, customers are happy. And when customers are happy, the company thrives.

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