NEO: A Win-Win Approach for Employee
Retention
G. Sindhu* and
R. Anitha
PPG
Business School, Coimbatore
PPG
Institute of Technology, Coimbatore
*Corresponding
Author E-mail: - gsindhuravi@gmail.com
ABSTRACT:
Business have learnt that
employee orientation plays a very important role in the development and
performance of an employee. Managers
often assume incorrectly that workers have the same work ethic and knowledge of
the workplace that they do. They presume
that people know what is expected out of them.
But the real fact is employees need to know not only how to carry out
their duties but also the organization's policies, procedures and expectations
before they take up their responsibilities.
Thus New Employee Orientation (NEO) is an important phase for all
companies to offer. The orientation process familiarizes new employees with
company rules, regulations, people and the office layout. A new-employee
orientation program will help new employees feel welcome and become adjusted
quickly to a new work environment. Though orienting employees properly to their
new work place is time consuming process, it is considered to be a wise
investment of time which will reward the company with more productive and
satisfied employees in the long run.
KEYWORDS: New Employee Orientation, Retention, Induction,
Training, Recruitment, Selection Process
Recruitment and selection would
become a fruitless exercise, if the
employee is not maintained, developed and retained in the organization. This is
possible only when orientation or induction program is considered as the last
phase of recruitment and selection process. This program plays a vital role on
the part of new joiners as well as on the development of the company. A
new-employee orientation program includes formal presentations on company's
policies and procedures as well as the sharing of other information that helps
to promote a smooth transition to the workplace. Orientation helps employees
become more comfortable with their new jobs.
Employee development is crucial for customer satisfaction, retention and
the growth of the company. A good
employee orientation will ensure that the employees feel motivated and clearly
understand his duties in the organization well in advance. Like the say, "first impression are
unforgettable", the orientation process has to be carefully planned and
executed to ensure that employee ends up knowing all about the company and the
role he has to play in helping the organization to achieve its objectives.
New employee feel overwhelmed
the first few days on the job. The purpose of NEO program is to provide the
employee with limited and organized information to make the job seem more
manageable and the environment more comfortable. It should also create an
exciting, rewarding and manageable first few days for all new employees. NEO is
a planned welcome to the organization that usually is shared by the human
resources or training department and the new employee’s supervisors. The
supervisor's role in NEO is clear and well executed with human resources
department's or function's assistance. The human resources department or
function is usually best equipped to share organization policy, history and
benefits. Supervisors in turn prefer to explain safety rules, reporting
requirements and job tasks. The sessions
are usually made interactive so that organization can put light on its
requirements, functions, processes, vision, and mission. It is the session in
which the new employee feels ownership on the organization and made aware of
what is expected from him.
A strategically designed NEO
program can reduce turn over and save an organization thousands of dollars. One
reason people change jobs is because they never feel welcome or part of the
organization they join. A well thought out orientation process takes energy,
time and commitment; however it usually pays off for the individual, employee,
the department and the organization as a whole.
REVIEW
OF LITERATURE:
According to Jean Barbazette, Chief Consultant for The
Training Clinic and author of Successful New Employee Orientation: Assess,
Plan, Conduct, and Evaluate Your Program,
gives few tips for making the orientation program more effective. Managers should sit through the training program and make notes
about what works, what is out of date and what could use a bit more
fine-tuning. Feedbacks in a way of informal interviews or anonymous surveys
should be solicited from recent trainees for making the orientation more
effective. Identifying the most important things new employees need to know and
dividing the training time accordingly will save the time and resources. He further added that by preparing a folder
with all written training materials and giving it to the new joiners before the
orientation session will provide a chance to get familiarized themselves with
the organization's policies and procedures in advance. He concluded by saying
that training program is the chance to make a positive first impression on new
employees, hence it is necessary to make the most of it with a streamlined,
exciting program that engages and inspires.
Tess. C. Taylor, an HR expert
(2011) says that the purposes of an
employee orientation program are to give new hires basic information about the
company, orient them to the company initiatives, reduce first-day anxiety, and
help the new hire to become productive right away. Therefore, designing a new orientation
program that provides certain fundamentals which will in turn help to ensure
that the employees stay on the board on the long run is the biggest challenge
for any organization. He suggested three types of orientation program such as
self-directed employee orientation program, mentored employee orientation
program and formal employee orientation program.
Matthew Torren
(2010) stressed the importance of
Orientation Program by saying that it would help the new employee to get
familiar with their new surroundings and allows them to understand that the
organization care about their being comfortable and succeeding at their job. He
further said that the orientation material should cover industry specifics,
safety, company history, goals, and culture. The typical orientation should
have three steps such as filling out taxes and personnel forms, employee
handbook, which should include topics like benefits, policies, procedures,
dress code, sick leave, punching in, work rules, and email policy and the final
step is the coworker introductions by having interactions with the new
employee.
Jean Schied
(2010) in his study clearly brings
out the top five benefits enjoyed by Fortune 500 companies by effective
implementation of the employee orientation program. The first and foremost benefit is that fair
due diligence ie., the new employee adapts to the new
surroundings quickly, secondly an orientation program can help employer to
assess the interpersonal skills of the new joiners by keenly observing how well the employee fits in with co-workers
and with customers or clients. Thirdly
the employee gets the chance to learn new things without any fear of pressure ie., the employee gets ample time period to get adjusted to
processes or procedures. Fourthly, there may be skills or techniques and even
suggestions a new employee may offer that organization doesn’t have currently,
hence unknown skills may be developed and the final benefit is that new
employees are not offered benefits until they successfully complete the
orientation period. This will save the company money in the form of employee
benefit cost while the new hire gets acclimated to his new position.
Max Messmer
(2000) said that orientation
programs can be a key to employee retention.
He further says that the best orientation programs are well-planned,
ongoing processes tailored to firm's corporate culture and its unique employee
base. Objectives of orientation program include clarifying responsibilities for
new hires, educating employees on firm's overall mission and business
practices, providing an overview of corporate policies and procedures and
giving new hires a sense of the prevailing culture in the firm, ensuring
employees feel that they have the tools, which needs to be productive and can
reach their full professional potential and engendering a sense of camaraderie
and collaboration and making sure all employees feel they are part of the team.
Robin Thomas (2000) explains the priorities of new hire orientation. He explains about the seven
steps on how to coordinate orientation and new hire legal compliance into a
balanced process. The various steps are
making new employees feel welcome and
part of the group, providing an overview of all operations, Communicating
information about the organization’s goals and culture, providing detailed
information about the new hire’s position, assigning new employees meaningful work, reviewing carefully important
policies and benefits, special training on some policies such as sexual
harassment, drug and alcohol use and testing, and safety and finally completion of all necessary paperwork, but it
should not dominate the orientation.
OBJECTIVE OF THE STUDY:
Most employers spend a lot of time and money on the recruiting and
hiring process: finding qualified applicants, interviewing, checking
references, and creating an acceptable offer. But, the process does not
end once the new employee has been hired. A program to assimilate the
employee into the new job is a primary ingredient for reducing future employee
performance problems and turnover. However, management attention is often
diverted to all the necessary new hire paperwork needed to ensure compliance
with today's maze of employment laws. Unfortunately, too many
organizations become overwhelmed by the paperwork demands and neglect the
fundamentals of the orientation process. A better approach is to put the
focus on welcoming and integrating new hires and on laying the groundwork for
improved performance and retention. Many of the past studies were related
to effectiveness of orientation program, the benefits of NEO program, steps to
conduct effective orientation program, consequences of bad NEO program,
priorities of NEO program etc. Hence the
present paper is an attempt made by the researchers to analyze the purpose of
NEO program, the opinion of employees regarding the conduct of NEO program in
their company and examines the satisfaction level of the employees on NEO
program. The paper also highlights the relationship between NEO program and
employee’s satisfaction or retention levels.
In addition to objectives the following hypotheses were framed:
Hypothesis
1: There is no significant relationship between relevant topics covered and overall employee satisfaction towards
NEO program.
Hypothesis 2:
There is no
significant relationship between tenure of the employees and overall
satisfaction on NEO program.
RESEARCH METHODOLOGY:
The present study is of analytical in nature. Accordingly, data
collection were done both by primary and secondary source. The primary data were collected with the help
of pre-tested structured questionnaire from 75 respondents (employee) of Chennai
city selected on the basis of convenience of the researcher and the secondary
data were collected from various journals, reports, books and websites. The
data collected through questionnaire has been tabulated and analyzed by using
Simple Percentage Analysis, weighted average and Chi- Square Test.
Weighted Average: Weighted
average method is used to analyze the degree of employees' satisfaction on new
employee orientation program. The
formula for weighted average method is as follows:
Weighted
Average = [ ∑WiXi /
∑Wi ]
Where,
'xi' are values of the quantity whose weighted average is being
calculated, while 'wi' are the values of
the corresponding weights.
Chi-Square Test: It is a statistical test commonly used
to compare the observed data with the expected data to obtain according to a
specific hypothesis. In the present
study, it is applied to test whether there is significant relationship between
topics covered and overall employee satisfaction towards NEO program and also
to test whether there is significant
relationship between tenure of the employees and overall satisfaction on NEO
program.
Formula: c2 = (O-E) 2 / E
O = Observed frequency
E = Expected frequency
c2 = Chi-square value
SPSS
package was used for data compilation and analysis purposes.
RESULTS AND DISCUSSIONS:
To
conduct the present study, employees of some organizations of Chennai city were
examined to know the purpose and their
practices on conducting the New Employee Orientation Program (NEO) and to analyze
the perception and satisfaction level of employees towards it.
The
study revealed that among 75 respondents, 49 of them are male and 26 of them
are female. The age classification analysis revealed that among 75 respondents,
33% of them were between the age category of 21-25 years, 39% belonged to the
age category of 25-29 years and 24% of
them were between 20-40 years and remaining 4% were above 40 years.
Table 1: Satisfaction Level of
the Employees on NEO Program
S. No |
Opinion |
HS* |
S* |
N* |
D* |
HD* |
W.A* |
1 |
I am satisfied with
the scheduling of orientation programs |
23 (31) |
45 (60) |
7 (9) |
0 (0) |
0 (0) |
21.07 |
2 |
Orientation Handbook
is useful |
9 (12) |
45 (60) |
19 (25) |
2 (3) |
0 (0) |
19.07 |
3 |
Topics are clear and
understandable |
5 (7) |
29 (39) |
30 (40) |
11 (14) |
0 (0) |
16.87 |
4 |
NEO covered the
relevant topics |
1 (1) |
21 (28) |
36 (48) |
16 (22) |
1 (1) |
15.33 |
5 |
NEO helps to get to
know co-workers |
6 (8) |
19 (25) |
29 (39) |
17 (23) |
4 (5) |
15.40 |
6 |
NEO gives information
on employee benefits |
10 (13) |
28 (38) |
19 (25) |
12 (16) |
6 (8) |
16.60 |
7 |
Information on
employee benefits were clear and understandable |
14 (19) |
27 (36) |
22 (29) |
10 (13) |
2 (3) |
17.73 |
8 |
Scheduling of
benefits orientation were close to hire date |
10 (13) |
27 (36) |
28 (38) |
10 (13) |
0 (0) |
17.47 |
9 |
Queries regarding the
employees benefits were handled |
11 (15) |
30 (40) |
22 (29) |
12 (16) |
0 (0) |
17.67 |
10 |
Welcome by immediate
supervisor |
16 (21) |
31 (41) |
15 (20) |
13 (17) |
0 (0) |
18.33 |
11 |
NEO explains the
department policies and procedures |
8 (10) |
32 (43) |
29 (39) |
6 (8) |
0 (0) |
17.80 |
12 |
NEO provides introduction
of key contacts of the company |
3 (4) |
37 (49) |
33 (44) |
2 (3) |
0 (0) |
17.73 |
13 |
On-the-job training
is useful |
3 (4) |
33 (44) |
29 (39) |
10 (13) |
0 (0) |
16.93 |
14 |
During training
program, the required resources were provided |
6 (8) |
34 (45) |
21 (28) |
11 (15) |
3 (4) |
16.93 |
15 |
The content of
training manual was useful |
7 (9) |
36 (48) |
21 (28) |
10 (13) |
1 (1) |
17.53 |
16 |
Training by co-worker
and supervisor was helpful |
11 (15) |
37 (50) |
19 (25) |
7 (9) |
1 (1) |
18.33 |
17 |
The duration of
training program was adequate |
15 (20) |
29 (39) |
24 (32) |
7 (9) |
0 (0) |
18.47 |
18 |
During the training
program, feedbacks on progress were given |
8 (11) |
26 (35) |
24 (32) |
15 (20) |
2 (3) |
16.53 |
19 |
Overall experience in
introduction and information meetings |
2 (3) |
34 (45) |
27 (36) |
12 (16) |
0 (0) |
16.73 |
(Source: Primary data)
(Figures in the parentheses represents percentage to the total)
*HS- Highly Satisfied *S- Satisfied *N-
Neither satisfied nor dissatisfied
*D- Dissatisfied *HD-
Highly Dissatisfied *W.A-
Weighted Average Score
Weighted average method was
used to understand the degree of satisfaction of the employees on NEO program
on various aspects such as scheduling, orientation handbook, topics covered in
the program, information on employee benefits, handling of queries by
supervisors, welcome by immediate supervisors, explanation on department's
policies and procedures, introduction of key contacts of the company,
on-the-job training and its usefulness, resource availability, training by
co-worker and supervisor, the duration of training etc, which is illustrated in
the Table-1. It was inferred that the
employees were highly satisfied only
with the scheduling of new employees' orientation program, which showed the
average mean of 21.07.
It was further understood that the employees were
satisfied with the overall performance of the NEO program. On investigating the various features of NEO
program, it was found that the handbook provided during orientation was ranked
second with the average mean of 19.07.
The third rank was given to duration of the training program (average
mean = 18.47) which was normally a weeks time or
so. Next rank was given to the
acceptance by the immediate supervisor and training by co-workers of the same
department which showed the average mean of 18.33. The respondents felt that training was
extremely productive when it was given by their supervisors and co-workers as
they could predict the expectations of the organization from the
department. The explanation on
department's policies and procedures was ranked fifth with the average mean of
17.80 and employee benefits information along with information on key contacts
of the company were ranked sixth with mean of 17.73. The respondents further admitted that the NEO
program helped them to get introduced with the key person and to understand the
communication protocol of the organization clearly.
The respondents showed the least satisfaction towards
the topics covered in the NEO program and understanding their co-workers during
the NEO program. Hence, the organization
has to strategically plan the NEO program which covers the relevant topics and
frame the program in such a way that it brings the closeness between the
coworkers and new joiners at the time of training.
Employees were asked about their total tenure in the
present company and their response was tabulated and depicted in Table.2
Table
2: Extent of employee's association with their company
S. No |
Duration |
No of respondents |
Percentage |
1 |
Less than 1 Year |
5 |
7% |
2 |
1-2 Years |
19 |
25% |
3 |
2-3 Years |
15 |
20% |
4 |
3-4 Years |
26 |
35% |
5 |
Above 4 years |
10 |
13% |
|
Total |
75 |
100% |
(Source: Primary Data)
It clearly indicates that among 75 respondents, 10 of
them were working for above 4 years, 26 of them were working between 3-4 years,
15 respondents were with their present company between 2-3 years, 19 of them
were found to be associated with their present company between 1-2 years, and
only 5 respondents were working for the company less than a year.
Hence it was inferred that more than 75% of
the employees were working in their present organization for more than 2 years
which shows a positive sign for any organization to be successful in a
increasingly complex and competitive global economic environment. In short it can be said that NEO program act
as a tool for motivating, developing and retaining their employees in the long
run.
Hypothesis
1:
H0: There is no significant relationship between topics covered and overall employee satisfaction towards NEO
program
Ha: There is significant relationship between topics covered and
overall employee satisfaction towards NEO program.
Table 3: Chi-Square Tests
|
Value |
Degrees of freedom |
Asymp.
Sig. (2-sided) |
Pearson Chi-Square |
43.171a |
9 |
0.000 |
Likelihood Ratio |
27.380 |
9 |
0.001 |
Linear-by-Linear Association |
15.114 |
1 |
0.000 |
Number of Valid Cases |
75.0 |
|
|
a14 cells (87.5%) have expected count less
than 5.
The minimum
expected count is .04.
The table 3
shows the results of chi-square test applied to find out whether there is
significant relationship between topics covered in NEO program
and overall satisfaction of the employees towards NEO program.
As the p = 0.000, less
than level of significance of 0.05 at 9 degree of freedom, hence we reject the
null hypothesis and conclude that there exist significant relationship between
the topics covered and overall satisfaction of
employee on NEO program.
Hypothesis 2:
H0: There is no significant relationship between
total tenure of the employees in their present company and overall satisfaction
on NEO program.
Ha: There is significant relationship between total
tenure of the employees in their present company and overall satisfaction on
NEO program.
Table 4: The
Chi-Square Test
|
Value |
Degrees of Freedom |
Asymp.
Sig. (2-sided) |
Pearson Chi-Square |
14.609a |
4 |
.006 |
Likelihood Ratio |
10.279 |
4 |
.036 |
Linear-by-Linear Association |
6.992 |
1 |
.008 |
Number of Valid Cases |
75 |
|
|
a7 cells (77.8%) have expected count less
than 5.
The minimum
expected count is .08.
The table 4
shows the results of chi-square test calculated to find out whether there is
significant relationship between total tenure of the employees in their present
company and overall satisfaction on NEO program. As the p = 0.006, which is less than level of significance of 0.05 at 4
degrees of freedom, we reject the null hypothesis and conclude that there
exists significant relationship between total tenure of the employees in their
present company and overall satisfaction on NEO program.
SUGGESTIONS AND RECOMMENDATIONS:
Based
on the present study, the following suggestions and recommendations were made:
·
Human
Resource professionals and line managers first need to analyze the key
orientation area ie., relevant topics to be covered
before implementing or revamping a current program.
·
Though
most of the companies in the present scenario offers orientation program to
their new employees, only strategically planned and well structured program
will help organization in retention, motivation and job satisfaction, enabling
each individual to become contributing member of work team.
·
Any
employee when put into a new, strange situation, will experience anxiety that
can impede his or her ability to learn to do the job. Hence it is advisable
that the immediate supervisors or co-workers can have an interactive session
during the orientation, which will help to reduce anxiety and feel comfortable,
welcome and secure. Further, it can help the supervisor to ensure that he will
be available to new employees on the first day to provide personal attention
and to convey a clear message that new joiners are important additions to the
work team
·
Employee
feedback on NEO program should be collected immediately after the completion of
the program to find out how they perceived the orientation process and the
organization should be ready to make changes based on their recommendations if
necessary.
CONCLUSION:
Orientation program provides the employees
with the first impression of their new work place. As the proverb says, "a good beginning
makes a good ending", hence the NEO program gives the new employee the first
and lasting impression about the working environment, which prepares him to serve the organization in the long
run. Business success relies on employee
retention level of an organization and effective management of employees is
possible by successful implementation of NEO program. The present study
revealed that there is a positive relationship between the effectiveness of
orientation and the employees’ retention levels. Hence, if NEO program is
strategically planned and well carried out, the advantages are just numerous which
can be seen via the employees input in their increased productivity of the
organization. Orientation will make a significant difference in how quickly an
employee can become more productive and also has long term positive effects on
the organization. Looking forward to integrate new ideas and fresh approaches
into the program, studying other companies’ orientation policies as well as
conducting additional research can further help organizations to effectively
retain their workforce.
REFERENCE:
1.
http://www.brighthub.com/office/human-resources/articles
2.
http://findarticles.com/p/articles
3.
http://www.ehow.com
4.
http://www.hcareers.com/us/resourcecenter/tabid/306/article
5.
http://www.workplace-communication.com/effective-employee-orientation.html
6.
http://www.motivoperformance.com/pdf/Employee%20On%20Boarding.pdf
7.
http://www.python-in-business.org/effective-employee-orientation.html
Received on 02.09.2011 Accepted on 29.10.2011
©A&V
Publications all right reserved
Asian J. Management 2(4): Oct.-Dec., 2011 page
173-177