Onboarding: A Revolution in Hiring New Leaders
Common sense and research tell us that credit unions and CUSOs should put time and effort into newly placed executives, preparing them so they hit the ground running from day one. That’s where a comprehensive process called ‘onboarding’ comes in.
“It’s a relatively new word and concept,” said Mark Elliott, founder and CEO of PowerStart Onboarding. “You’re not teaching them how to do the job, but research shows that new leaders, even those with years of experience, face many challenges that can slow or derail their progress. Those first few months on the job have a disproportionate impact on the new leader’s success or failure.”
Everyone knows how costly new hires are. Onboarding ensures new hires bond quickly and experience immediate success, providing a return on that investment right away.
“This is the best program,” said Doug Nahas of NASA FCU who was recently promoted as VP of branch operations and who completed the course in June. “The great content, the custom tools, the reinforced relationship with my boss are all great. The reading is quick and easy. I often read it twice or three times. The course To-Dos are really valuable to approach my onboarding in a structured way. Plus, it facilitates discussions with my boss that are substantive and focused on real work situations and things we need to accomplish. It was a great help to get us started on the right foot.”
As Nahas point out, rather than cramming hour after hour of mind-numbing information into the first week, Elliott provides a comprehensive process that offers tools, resources, advice and counsel to the newly placed leader. The process is delivered to senior executives as an online application, supported by expert executive coaching. “Truly, onboarding is a steal,” Elliott said. “If a board has paid a recruiter top dollar to find the right candidate, this is an insurance policy – risk management, if you will.”
Elliott identifies the first 90-100 days as the critical timeframe for a newly hired leader, when boards and staff develop key impressions about the new hire.
“Those first few months are when you can figure out if the new hire is a winner, someone to commit to, support and follow,” he said. “Or, a death spiral begins in which the board decides the new CEO was a mistake, and they should cut their losses before the credit union is impacted by low staff morale, missed opportunities and lost momentum.”
The bottom line for recent hires and their employers is that time and money are more valuable than ever, making this an important issue. Credit unions are more comprehensive organizations than they were in the past. Competition is growing, the economy is tough and members are demanding new products and services. Credit union boards are also experiencing turnover and new volunteers are ready to hire the next generation of credit union CEOs.
Elliott cites research from the Harvard Business School and points to one study that discovered new leaders were prone to make serious misjudgments, missteps and mistakes during that crucial 90-100 day onboarding period. In fact, more than half of new leaders were gone in 18 months-some much sooner.
“I’ve been an executive search consultant for 25 years and never had a failed executive,” Elliott said. “There shouldn’t be any stigma connected to having a career coach and going through the onboarding process. It’s lonely at the top and to succeed in this ever-changing world you need a sounding board and an expert to help you navigate the new waters.”
