6 Reasons Integrating Company Values Is Essential For Effective Onboarding & Employee Retention
As a leader, hiring top talent is key to driving your company's success. The problem once they are hired is, how do you know whether you’ve set them up for success and whether they will stay or not? Research has shown that incorporating your company’s core values into the onboarding process can help set new employees up for success from day one, as well as inspire employee loyalty and longevity. Let’s explore what makes this so effective.
1. Values Establish Workplace Culture Integration
Including company values in the onboarding process helps new employees acclimate to your organization's culture more quickly. When new hires understand and embrace the core values of your company, they are more likely to embody those values in their daily work and interactions with colleagues. Cultural integration not only fosters a sense of belonging but also strengthens team dynamics and collaboration.
2. Values Drive Innovation
A strong understanding of company values can drive innovation. Research by McKinsey shows that organizations with strong cultures of innovation are 2.4 times more likely to have above-average financial performance. By emphasizing values such as creativity and continuous improvement during onboarding, companies can inspire new hires to contribute innovative ideas. For example, 3M’s onboarding process highlights its commitment to innovation, encouraging employees to develop new and creative solutions.
3. Values Guide Performance Management
Incorporating company values into the onboarding process can also help guide performance management decisions down the line. When employees are hired based not only on their skills and experience but also on their alignment with your organization's core values, they are more likely to exhibit behaviors that support those values in their day-to-day work. This makes it easier for managers to evaluate performance against both job responsibilities and adherence to company values.
4. Values Build a Strong Employer Brand
A strong employer brand attracts top talent. Glassdoor found that 77% of job seekers consider a company’s culture before applying. Incorporating company values into the onboarding process strengthens your employer brand by demonstrating to new hires and potential candidates that your organization is committed to its core principles. Companies like Salesforce, which emphasizes its values of trust and customer success, have seen positive impacts on their employer brand and talent attraction.
5. Values Facilitate Team Cohesion
When all team members share a common understanding and commitment to the company's values, collaboration and teamwork improve. A study by the Center for Creative Leadership found that effective team collaboration leads to better organizational performance. At HubSpot, new hires learn about the company’s HEART values (Humble, Empathetic, Adaptable, Remarkable, and Transparent), which fosters strong team cohesion and collaboration.
6. Values Strengthen Ethical Conduct
According to the Ethics Resource Center, companies with strong ethical cultures have 50% fewer incidents of misconduct. By emphasizing values such as honesty and integrity, new hires understand the importance of ethical conduct from the start. Johnson & Johnson, for instance, integrates its Credo values into the onboarding process, reinforcing a commitment to ethical practices.
Incorporating company values into the onboarding process is essential for successfully integrating new talent into your organization. As a C-Suite, VP of HR, it is crucial that you champion this initiative within your organization to ensure long-term success and sustainability.
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