How to Design an Effective Onboarding Program for your Small or Medium Business
So, you just signed a contract with your next employee. Great job! But what now? How do you ensure this highly skilled individual will be able to perform at their absolute best in your company? Many small and medium-sized businesses (SMBs) invest significant time and resources into hiring the right people, which is commendable. However, they often don’t invest nearly as much in structuring an effective onboarding program for their new hires. This is a missed opportunity—a poorly structured onboarding process can lead to disengagement, low productivity, and even early employee turnover. (You can read more about WHY a good onboarding program is critical for your business in this blog post.)
Studies show that 66% of employees who undergo a structured onboarding process are likely to stay with their company for over three years. (Source) A well-designed onboarding program is more than a series of administrative tasks; it’s a strategic effort to integrate new hires into the company culture, equip them with the tools and knowledge they need, and empower them to succeed. In this blog, we’ll explore how you can design an effective onboarding program for your SMB. We'll break the onboarding process into manageable steps and provide actionable insights to help you implement them successfully.
Steps to Creating an Effective Onboarding Program
A structured onboarding program should be broken down into five key stages:
Pre-boarding (Before Day 1)
Day 1: First-Day Orientation & Setup
Week 1: Company-Wide & Initial Role-Specific Training
Month 1: Building Competence and Confidence
Month 2 and Beyond: Supporting Growth and Retention
Let’s dive into each phase in detail.
1. Pre-boarding: Laying the Foundation Before Day 1
An employee's relationship with a company begins the moment they sign the offer letter. Communication with the new hire should start right away, ensuring they feel engaged and prepared even before their first day.
Why It Matters:
Pre-boarding sets the tone for your new hire’s experience. It reduces first-day anxiety and helps them feel valued and informed, increasing engagement and enthusiasm even before they start. It also fosters a sense of commitment to the company. Studies show that up to 22% of new hires fail to show up on their first day of work. (Source) A well-thought-out pre-boarding experience can significantly reduce this number by making new hires feel connected with their new workplace even before their first day.
What to Include in Pre-boarding:
Welcome Communication: Send a personalized welcome email introducing the new hire to their manager and teammates, and outlining what they can expect in their first few weeks.
Gather Basic Information: Obtain emergency contact details and other relevant personal information required for HR records.
Paperwork and Administrative Tasks: Provide digital access to forms (whichever possible) such as tax documents, direct deposit information, and confidentiality agreements. Completing these ahead of time saves valuable first-day hours.
Essential Resources: Share resources like an employee handbook, company policies, and team structure. This will help the new hire feel better prepared and more confident on their first day.
Prepare their Workspace: Ensure their desk, equipment, or remote work setup is ready. Double-check that their email, tools, and accounts are functional.
2. Day 1: First-Day Orientation & Setup
The first day is all about making a strong first impression and ensuring that the new hire feels welcomed and supported.
Why It Matters:
Just as recruiters are wondering if a new hire is a good fit for their company, new hires also try to decide whether a company is a right fit for them. Day 1 is a crucial milestone in a new hire's onboarding journey that helps ease any nervousness they might be feeling, feel welcomed, and reassures them that they’ve made the right decision in joining your company.
What to Include in Orientation:
A Warm Welcome: Personally greet the new hire, introduce them to the team, and provide a tour of the office (or a virtual walk-through if remote).
Welcome Kit: Present company swag, a personalized note, or a small gift to make them feel appreciated.
HR & Payroll Setup: Ensure that all necessary paperwork is signed, including tax forms, benefits enrollment, and payroll registration.
Technology & Equipment: Set up their email, communication tools, and access to company software. Provide basic IT orientation.
Company Overview: Begin company-wide training, covering mission, vision, values, and business objectives.
Meeting with Manager: Hold a one-on-one meeting with their manager to discuss job expectations and answer any questions.
Team Introductions: Arrange informal introductions with key colleagues.
3. Week 1: Company-Wide & Initial Role-Specific Training
Week 1 is a crucial period that helps new hires adjust to the company, understand its culture, and start getting familiar with their role.
Why It Matters:
A well-structured first week ensures that new hires not only understand their responsibilities but also feel connected to the organization. It helps reduce confusion, improves retention, and ensures a smoother transition into the role.
What to Include in Week 1:
Company-Wide Training: Assign training that provides an overview of the company's mission, values, policies, products, and business objectives.
Compliance Training: Provide necessary legal and regulatory training specific to the company and industry.
Networking & Team Bonding: Introduce new hires to leadership, facilitate casual meet-ups, and encourage coffee chats or lunch outings with different team members.
Assign a Mentor/Buddy: Provide a support system for guidance and smoother integration. A SHRM study found that 56% of new hires said meeting an onboarding buddy once in 90 days helped them become productive faster. (Source)
Begin Role-Specific Training: Start assigning training related to the new hire's role, including their team and department structure, the different tasks they are expected to complete in their role, tools and processes they will be using, etc. (Since comprehensive role-specific training typically takes more than a week, this process will continue into the next stage.)
Basic Hands-On Work: Start small assignments related to their role to build confidence.
4. Month 1: Building Competence and Confidence
The first month is when new hires transition from orientation to meaningful contributions. Managers play a vital role in providing guidance, feedback, and encouragement.
Why It Matters:
The first 30 days determine how quickly a new hire can adapt and contribute. A structured approach ensures they feel supported, reduces overwhelm, and boosts retention rates.
What to Include in Month 1:
Expanded Role-Specific Training: Continue training sessions that build on their initial training from Week 1, ensuring they gain hands-on experience in their tasks.
Regular Check-ins: Schedule weekly one-on-ones with their manager to review progress, address challenges, and provide constructive feedback. A study by Gallup found that employees are 3.4 times more likely to say their onboarding experience is exceptional if managers actively participate in the process. (Source)
Encourage Collaboration: Foster teamwork by integrating new hires into projects, meetings, and brainstorming sessions.
Goal Setting & Performance Tracking: Outline realistic performance expectations and track early wins to build confidence.
Gather Feedback: Ask for feedback on the onboarding experience and make adjustments where necessary.
5. Month 2 and Beyond: Supporting Growth and Retention
After the first month, the focus shifts to long-term success and retention. Employees should now be comfortable with their roles and ready to grow within the company.
Why It Matters:
Onboarding should not stop after the first month. Employees who feel continuously supported and see opportunities for growth are more likely to stay engaged and contribute meaningfully to the company. Ensuring ongoing development and support prevents disengagement and turnover.
What to Include in Month 2 and Beyond:
Advanced Role-Specific Training: Continue refining their skills through deeper training programs, workshops, and cross-functional exposure.
Regular Performance Reviews: Conduct structured performance discussions to evaluate progress, provide constructive feedback, and identify areas for improvement.
Mentorship & Career Growth: Encourage mentorship programs and discuss career paths to help employees see long-term opportunities within the company.
Encourage Leadership Opportunities: Assign more responsibilities, introduce leadership training, and allow employees to take ownership of projects.
Team Integration & Culture Engagement: Promote engagement through team-building activities, company events, and professional networking opportunities.
Solicit Continuous Feedback: Keep refining the onboarding program by gathering feedback from employees and making improvements based on their experiences.
Conclusion: Investing in Your Employees is Investing in Your Business
Designing an effective onboarding program for your SMB requires effort, but the long-term benefits far outweigh the time investment. By focusing on the five key stages—Pre-boarding, Day 1, Week 1, Month 1, and Month 2 and Beyond—you create an onboarding experience that fosters engagement, productivity, and retention.
Remember, onboarding isn’t just about getting new hires up to speed; it’s about helping them thrive in your company. When you invest in your employees' success from day one, you build a workforce that is motivated, skilled, and aligned with your business goals.
Start refining your onboarding strategy today and watch your team grow into a powerhouse of engaged and high-performing employees!
Need help creating your onboarding or role-specific training for your company? Reach out to us today, and we'll help you design a tailored onboarding program that aligns with your business objectives.
