Finding new talent is harder than ever these days. U.S. unemployment was just under 4 percent in the beginning of 2024 and continues to trend lower. Battling for talent somehow has become a fight to retain the talent employers already have.
We know the foundational role HR plays in the hiring process for new employees, but what influence, if any, might it have on retaining those workers for the long term? HR divisions can be sprawling enterprises with broad responsibilities that affect the day-to-day lives of employees. Can that broad reach be leveraged to retain talent?
HR departments often are seen as punitive enforcers of the rules, but we at the ADP Research Institute questioned this assumption. In 2021, we developed a way to measure the basic needs of employees, asking them about safety at work, feeling valued, and their opportunity to grow. Combined, these questions gave us a way to measure trust with HR.
It seems like a lot to expect from one department, but we found evidence that a trusting relationship between HR and employees led to higher ratings on other measures. We developed a 15-item metric that can measure the effectiveness and quality of HR service and pinpoint ways to increase that effectiveness. (See our full HRXPS research report for survey items and methodology.)
Using this metric, we sort employees into three distinct categories.
Value promoting: People who feel that HR is a net positive that adds significant value to their experience as an employee.
Performing: Employees who are content with HR.
Value detracting: Employees who view HR as a net negative.
We found that respondents who say they have no intent to leave their current company are 3.8 times more likely to see HR as a net benefit or value promoting.
If a person’s perceptions of HR value are related to their intent to stay at a company or leave, what can an HR department do to affect those perceptions? One area floated to the top: onboarding. Even small changes to this process have the potential to reap great benefits.
Onboarding
It starts on day one. Is onboarding an intentional, formal process or something that happens haphazardly? How an organization answers this question can make the difference between having a long-term employee or a revolving-door workforce.
An employee’s first on-the-job experience comes during onboarding, which gives HR departments a critical window for selling themselves as a net benefit to that new worker. The more formal the onboarding process, the better: Respondents who described their onboarding as “extremely formal” were 5.3 times more likely to view HR as a net positive.
Interestingly, the formality of onboarding sticks with employees for many years. In other words, HR continues to be judged more favorably through the years because of these very first interactions. Onboarding is crucial in an employee’s life cycle.
Formalizing the Onboarding Experience
Having a structured way to help new employees complete their documentation, benefits enrollment, and other paperwork is certainly important. But what else can HR do to ensure a formal onboarding experience?
1. Make a great first impression.
First impressions go a long way toward starting relationships on the right foot. HR can ensure everyone on a new hire’s immediate team or in their department is aware of their start date and ready to greet them throughout their first day. One-on-ones can be set up with people they’ll work closely with to establish connections and help new employees feel welcome. These things can be done for people who work remotely, too.
2. Plan for training or mentoring opportunities.
Establish structured opportunities during a new hire’s first few days and weeks. They can, for example, shadow or cross-train with members of their immediate team and people in other parts of the organization, exposing them to as many aspects of the business as possible. This will help new hires gain competencies quickly and give them the sense that they’re making a meaningful contribution to the team.
3. Conduct regular check-ins.
It’s vital that new employees feel supported during their onboarding. Ensure that team leaders or supervisors are equipped to have at least weekly check-ins with new hires. Structure the conversations to give employees time to ask questions and share their needs.
Giving structure to an informal onboarding process can be difficult for any organization, but it presents a unique challenge to smaller businesses that might not have a dedicated HR person or department. When this is the case, look at it as a growth opportunity for a team member who is naturally welcoming and inclusive of others. Allow that person to take responsibility for designing a structured onboarding process that works for your unique business needs.
The Bottom Line
Employees with a positive view of HR are likelier to stay at their organization. Those positive perceptions increase when onboarding is a structured, well-planned experience. Even incremental changes to the formality of the onboarding process can make a difference.
Tangible efforts to ensure employees are supported from day one can help them flourish in their roles now and encourage them to stay for the long haul.
