Pallet Service Corporation (PSC) is a second-generation company which operates 24 hours per day, five days per week which means finding and obtaining the right people is a must. This full-service pallet company and industrial cut-stock supplier operates three facilities between Minnesota and Wisconsin. It has developed a strong program for onboarding and training new hires. While the program is continually evolving, the goal is to help the company reduce turnover and streamline its entry program for new hires.
Maria Kehneman, human resources manager for PSC, spoke last year at the Kingdom Business Workshop at L&R Pallet in Denver. She talked on the onboarding practices at PSC. Kehneman said, “Our goal is for people to be excited to come to work.”
In 2018, PSC realized it was losing too many workers after only a limited amount of time with the company and needed to improve its onboarding process. Kehneman conducted one-on-one interviews and reviewed feedback with employees. This process highlighted common reasons why employees were leaving and what could be done to improve retention. She also conducted market analysis to see where PSC stood compared to other employers in terms of wages, benefits and policies. The company made changes to be more competitive and responsive to worker feedback. Those changes were launched in 2019 and the company hopes it will make a big impact although the success rate is still being determined after some extensive turnover in 2019.
“One of the hardest parts about addressing challenges like this is there is no magic bullet,” said Nick Wenner, vice president of operations for PSC. “Positively impacting culture and subsequently turnover is the result of many efforts working together to drive a desired result. None of it happens overnight, and it is hard to measure cause and effect when it comes to HR initiatives. That is one of the most frustrating parts. All we can do is work to be thoughtful in our approach and consistent in our execution.”
Kehneman explained that PSC developed a new onboarding process with three major components: a.) customized onboarding experience by position, b.) streamlined paperwork, and c.) setting clear goals for all workers from the first day on the job.
A big part of the PSC process is a tailored onboarding program designed to fit each major job category and a trainer who can speak the same language as the new employee. No more one-size fits all approach. The process starts with a job tour through the relevant areas of the plant which allows them to see the type of work they will be doing as well as the working conditions. This way the candidate will not be surprised by anything if they choose to accept an offer. Some employees will decide the job isn’t right for them after the tour. These candidates have a way of self-selecting themselves out of the process, which saves everyone time and money. “At the end of the day, we want to be a good fit for the candidate and we want them to be a good fit for our company,” said Kehneman.
PSC also offers prospective employees Realistic Job Previews. These are brochures explaining the specific job, a picture of a current employee with questions and answers designed to give the prospective worker a personal view of the job. This interview covers things the worker really likes and doesn’t like about the job. It also included an explanation of company benefits and job description, as well as basic company information. You can see an example on page 39.
A major objective of the onboarding process is to eliminate any uncertainty about the work environment or expectations. As part of this they also provide new employees with key manager contact information to communicate absences, sickness, etc. Kehneman commented, “We want to set clear goals and expectations for new hires on day one.”
PSC’s employee surveys identified that many employees, especially recent hires, didn’t know if they were doing a good job. These people complained that they didn’t have a review or conversations with managers. The company instituted a process to do reviews after 30, 60 and 90 days for new hires. They have also been working on implementing daily production meetings which include a quick stretching exercise and any daily headlines. From day one, new hires were trained on expectations and goals for their specific jobs. This new onboarding process also focused on saving money, saving time and ensuring that everyone is on the same page.
PSC also uses JazzHr (https://www.jazzhr.com/) to help with the recruiting, screening and paperwork processes. This software service is cost effective and is designed to help busy HR professionals save time. Kehneman said that JazzHR has assisted in locating good applicants in small towns where the labor pool is limited. PSC has also started using mobile phones to collect data on new hires and communicate information to workers. This service also communicates with their ADP HR & Payroll service to pass applicant info automatically into ADP for processing new hires to eliminate duplicate documentation and data entry. Documenting and tracking all of these processes with checklists ensures that onboarding is done right.
While PSC has not found the secret sauce, the company is evolving its approach and is looking to make onboarding a strength to improve employee retention.
