Build with Leila Hormozi: Exactly How To Onboard New Hires | Episode 235

Host: Leila Hormozi
Release Date: January 31, 2025

Introduction

In Episode 235 of Build with Leila Hormozi, Leila delves deep into the intricacies of onboarding new hires—a critical yet often overlooked aspect of building an unshakeable business. Drawing from her vast experience scaling businesses to the $100M mark by age 28 and her ongoing efforts with acquisition.com, Leila provides actionable insights to ensure that new employees not only fit seamlessly into the company culture but also thrive from day one.

The Importance of Effective Onboarding

Leila kicks off the episode by addressing a common issue faced by many business owners: high turnover within the first few months of employment. She recounts an encounter with a workshop attendee concerned about a misfit employee three months into their tenure. This scenario underscores the broader problem of inadequate onboarding processes.

“If you're not actively creating the onboarding experience, then you're essentially, there is an experience, it's just not the one that you wanted.” (00:04)

Leila emphasizes that onboarding isn't merely a procedural formality but a strategic investment vital for retaining talent and maximizing the return on recruitment efforts.

Common Reasons for Early Employee Turnover

A significant portion of early departures stems from a mismatch between expectations and reality. Leila references Tony Robbins' principle:

“If reality exceeds expectations, people are happy. If expectations exceed reality, people are not happy.” (00:06)

She explains that overselling the job or company culture can lead to cognitive dissonance, where new hires feel disillusioned upon encountering the true nature of their roles and the organizational environment.

Furthermore, Leila points out that accepting a job offer doesn't necessarily mean a candidate has ceased exploring other opportunities. Many continue to evaluate their fit within the company, making the initial onboarding period even more crucial.

Setting the Stage: Pre-Onboarding Strategies

Leila stresses that effective onboarding begins well before the new hire's first day. She outlines several proactive steps to engage and prepare employees from the moment they accept the offer:

1. Immediate Welcome Package: For remote employees, sending a welcome package and personalized notes or company swag reinforces the decision to join the team.

2. Pre-Work Materials: Providing reading materials or tasks before the start date caters to the enthusiasm of new hires eager to learn and contribute.

3. Setup Essentials: Ensuring that email accounts, workstations, and other necessary tools are ready before the first day demonstrates organizational efficiency and consideration.

“If you can do that after somebody comes in, you can show them progress. You can continue to give them small iterations and small challenges like this.” (00:33)

Leila likens the pre-onboarding phase to the initial communications in a sales process, highlighting the importance of sustained engagement to prevent new hires from feeling neglected.

First Day Practices: Making a Lasting Impression

The first day sets the tone for the employee's entire journey within the company. Leila debunks the common misconception that Human Resources should handle the bulk of onboarding on day one.

“Don't just delegate it to HR, don't delegate to somebody else. Make a good first impression.” (00:24)

Instead, she advocates for direct involvement from the employee's supervisor or manager. Key actions include:

• Setting Clear Expectations: Clearly outline what success looks like in their role.
• Introducing Key Personnel: Facilitate connections with team members and other departments.
• Fostering a Sense of Belonging: Integrate the new hire into the company culture promptly.

Leila underscores that employees are more likely to stay if they feel supported by their direct leaders rather than left to navigate the onboarding process independently.

Implementing the 30-60-90 Day Framework

A core component of Leila's onboarding strategy is the 30-60-90 day framework, which structures the new hire's integration and performance milestones over their initial three months.

1. First 30 Days: Learning, Immersion, and Quick Wins

   • Learning Objectives: Understand the company's unique operational nuances and what defines success within their specific role.
   • Quick Wins: Assign tasks that allow new hires to achieve early successes, boosting their confidence and earning team respect.

   “The best people I hire are always productive after 30 days. In fact, some of the best people I hire are productive within two or three weeks.” (00:18)

2. Days 30 to 60: Real-World Execution

   • Ownership: Begin assigning more substantial responsibilities, encouraging new hires to take ownership of projects or client relationships.
   • Productivity: While full productivity isn't expected immediately, progress and engagement should be evident.

3. Days 60 to 90: Full Ownership and Accountability

   • Results Focus: By this stage, new hires should be producing tangible results and fully integrated into their roles.
   • Evaluation: Assess fit based on performance and cultural alignment. If mismatches are apparent, decisive action may be necessary.

Leila emphasizes that this structured approach not only guides the new hire but also provides clear benchmarks for both the employee and the organization to measure progress and fit.

Positive Churn: Letting Go of the Wrong Fits

Not all turnover is detrimental. Leila introduces the concept of "positive churn," advocating for the prompt removal of employees who aren't the right fit for the organization.

“Positive churn means you get rid of the wrong people faster so that you can get the right ones in faster.” (00:28)

She challenges the sunk cost fallacy prevalent among business owners who hesitate to part ways with underperforming employees due to time or resource investments. According to Leila, retaining unsuitable hires not only drains resources but also negatively impacts team morale and overall company culture.

Key considerations for positive churn include:

• Skill Misalignment: Sometimes, despite comprehensive training, an employee may lack the necessary skills.
• Cultural Misfit: An employee who doesn't resonate with the company culture can disrupt team dynamics.
• Engagement Levels: Low engagement or lack of initiative are red flags indicating potential turnover.

Leila asserts that swift and decisive action in these scenarios is essential for maintaining a healthy and productive work environment.

Long-Term Engagement: Sustaining Progress

To ensure long-term employee retention and satisfaction, Leila underscores the importance of continuous progress and development.

“People feel happiest when they're making progress at work.” (00:35)

She references Harvard's "progress principle," which posits that employees are most engaged and motivated when they perceive they are advancing in their roles. Strategies to foster this include:

• Regular Feedback: Conduct frequent one-on-ones, end-of-week reports, and provide real-time feedback to guide and acknowledge employee efforts.
• Progress Tracking: Utilize scoreboards or other visual tools to showcase individual and team achievements.
• Incremental Challenges: Offer ongoing opportunities for growth and new challenges to keep employees invested and excited about their work.

Leila likens this to personal pursuits like fitness or relationships, where stagnation leads to disengagement. By continually facilitating progress, companies can sustain high levels of employee engagement and loyalty.

Conclusion: Addressing Onboarding Challenges

Leila wraps up the episode by reinforcing the idea that early employee turnover often signals onboarding deficiencies rather than recruitment flaws. She encourages business owners and leaders to critically evaluate their onboarding processes, ensuring that expectations are clearly set, support is unwavering, and progress is consistently fostered.

“If you're losing people early I will tell you this. It is often not a hiring problem, it is an onboarding problem.” (00:38)

Leila's comprehensive approach to onboarding—spanning pre-arrival preparations, impactful first-day interactions, structured 30-60-90 day plans, and strategies for positive churn and sustained engagement—provides a blueprint for businesses aiming to build resilient and thriving teams.

Key Takeaways

• Prioritize Onboarding: Invest significant effort into creating a structured and engaging onboarding process to reduce early turnover.
• Manage Expectations: Ensure that new hires have a realistic understanding of their roles and the company culture to prevent cognitive dissonance.
• Engage Early: Begin the onboarding process immediately after the job offer is accepted, not just on the first day.
• Implement a 30-60-90 Day Framework: Use this structured approach to guide new hires through their initial months, setting clear milestones and expectations.
• Embrace Positive Churn: Don’t shy away from letting go of employees who aren’t the right fit to maintain a healthy team dynamic.
• Foster Continuous Progress: Keep employees engaged long-term by ensuring they feel they are making meaningful progress in their roles.

Leila Hormozi’s insights in this episode provide a strategic roadmap for businesses seeking to optimize their onboarding processes, ultimately fostering a committed and high-performing workforce.