"Manager's Minute" Tip

(Article Archive)

New Hire Introductions That Increase Profits
by Ryan Sart


You’ve just invested a significant amount of resources in attracting and selecting your new hire. Now the challenge is getting that person integrated into your organization and keeping them happy. This is particularly important because new employees typically spend the first 30 days evaluating whether or not they are going to stay. And they make this evaluation while they are cashing your paycheck.

A new employee’s first day is typically a whirlwind of introductions, new materials, policies, and more. The new hire introduction should help provide an anchor for that whirlwind and give new hires a context for all they are supposed to learn.

Here’s a typical new hire introduction. An existing employee, who we’ll call Ed, is walking the new hire, Bob, around the office. As they move from cube to cube, the conversation goes something like this. “Tom sits here.” If Tom isn’t in his cube that introduction isn’t made. Or, perhaps Tom is on the phone and they wave at each other.The introduction may or might not be made later.

Or, Tom is available. And the introduction goes like this.

Ed: “Tom, this is Bob. Bob is the new guy. He starts today.”

Tom: “Hey, how are you?”

Bob: “Good.”

Tom: “Welcome.”

Bob: “Thanks.”

Ed: “Ok, let’s go.”

Does that introduction add value, increase productivity or make anyone feel welcome? Does it show existing employees that they are important? Did the introduction help Bob, the new employee, remember Tom’s name?

Here’s a simple, common sense introduction that helps build morale, increase productivity, and help the new employee feel a part of something bigger.

Former GE CEO, Jack Welch says “the manager should always do the new hire introductions.” If that is not possible, the person doing the new employee introductions should be a leader or someone you want to groom into a leadership position.

A new hire introduction that increases profits goes something like this:

Ed: “Tom Schaff, this is Bob Tillen, the newest member of our team. One of the reasons why we are excited to have Bob on our team is his drive and determination to get things done the right way the first time. Plus he brings some great industry knowledge that will be helpful to everyone.”

Ed: “Bob Tillen, this is Tom Schaff. Tom has been with us for 3 years and one of the things I admire about Tom is his ability to take complicated ideas and break them down into simple bites that everyone can understand. Tom is a great trainer and we really didn’t know what training was until Tom joined us.”

Ed: “Bob, as you learn more about the company and your job, you’ll see why Tom is so valuable around here and why he is so well respected. I think you’ll also find Tom to be a great help if you have questions on how things get done around here.”

Can you see where this is headed? Can you feel how this approach changes the new hire employee introduction dynamic? Does this approach reinforce values important to the company and success? Does it give deserved and authentic praise to the existing employee? Of course you don’t want new hire introductions to be the only time you praise people. But if you build recognition into new hire introductions, it is a great place to start. If you aren’t giving this kind of recognition when introducing new hires, chances are good praise and recognition are missing in other parts of your culture as well.

What makes this simple new hire introduction so powerful? Productivity and retention are two key factors in your company’s ability to attain your strategic goals. Productivity is directly tied to the amount of praise an employee receives. At the same time, only “one in three American workers can strongly agree that they've received any praise from a supervisor in the last seven days.” says a 2006 study from Gallup Research.

A positive response to the question about receiving praise in the last week is responsible
for a 10% to 20% difference in revenue and productivity. Hewitt Consulting completed a study in October 2006, and found that 29% of company stock value can be directly attributed to levels of workforce engagement. The study also reported that receiving praise in public is significantly more important than pay levels. So much so, that employees who report that they're not adequately recognized at work are three times more likely to say they'll quit in the next year.

“Employee recruiting and retention are an intertwined process which never ends. Public praise may sound like an insignificant way to keep employees happy, but it’s the little stuff that tips the scales in one direction or another. When you pay attention to the details the big issues fall right in line,” says Beth Smith, Director of Human Resources for Wight & Company, a Design-Build AEC firm located in Darien and Chicago, Illinois.

Senior staff at Wight & Company has long used the power of new hire introductions that recognize existing employees. They have ingrained that introduction style as part of their culture and the results are evident on and off their balance sheet.

It is one thing to tell people they matter. It is more effective to show them. Giving employees public praise demonstrates that you notice and that you care.

The new hire introduction outlined in this article takes a little more preparation. You have to know the staff and what they are good at. You have to be able to come up with different things for each introduction, because if each one is the same, you are better off using the previous model where there is fundamentally no introduction.

At the end of the introductions I’ve asked new hires what they want said about them when the next new hire is introduced. That helps set the tone for what the new hire wants to accomplish and helps motivate them. It is also part of the goal setting process that helps guide achievement and results.

While new hire introductions that increase profits is simple, it is all too often skipped because it isn’t part of the culture, hiring managers aren’t trained, or they are too busy to execute on this idea.

Using the new hire introduction method outlined in this article, you will accomplish the following:

• Make stronger impression on the new employee as a professional organization.
• Build morale for new hires and others. Morale is very contagious either way.
• Give the direct supervisor the opportunity to establish a strong relationship with the new hire and build on the relationship with existing employees.
• More quickly calm a new hire’s apprehensions and anxiety, helping them reach higher levels of productivity more quickly.
• Improve your chances of retaining employees long-term.
• Help the new hire remember everyone’s name.

Want to talk more about this article? Please call Ryan Sarti at 312-543-6952

About the author:
With 25 years of sales management expertise, Ryan Sarti is passionate about helping people and businesses succeed. Ryan is the Director of Sales for Flex Execs management Solutions and is the author of the book “Ten Deadly Reasons Why Sales People Fail and What You Can Do About It.” Contact Ryan at 312-543-6952 or rsarti@flexexecs.com.

Copyright 2006