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An Analysis of the New Employee Onboarding Process in Startup

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 2018 10th International Conference on Information Technology and Electrical Engineering (ICITEE)

An Analysis of the New Employee Onboarding

Process in Startup
Putu Yudia Pratiwi Ridi Ferdiana Rudy Hartanto
Department of Electrical Engineering Departement of Electrical Engineering Departement of Electrical Engineering
and Information Technology and Information Technology and Information Technology
Universitas Gadjah Mada Univerditas Gadjah Mada Universitas Gadjah Mada
Yogyakarta, Indonesia Yogyakarta, Indonesia Yogyakarta, Indonesia
[email protected] [email protected] [email protected]

Abstract— Turnover is one of the factors that can cause the needs with the company needs. Every employee has their own
development of a company to be hampered, especially for needs and expectations, as well as with company and
startup. The high level of employee turnover caused by many department. Balancing the needs and maximizing satisfaction
things, one of them is employee dissatisfaction. Onboarding between the company and the employee become a problem for
process is one of the ways that can be used to introduce the new the onboarding process. The fourth challenge is how to reduce
employee to the culture and work environment so that it can the new employee anxiety and make them fully accepted in
develop job satisfaction and convenience. However, to get an the company. Failure in doing onboarding will have an effect
effective result, onboarding process should also be done well and on the employee negative behavior, the expectation which is
systematically. This paper describes how the onboarding
not fulfilled which leads to a high turnover rate [5].
process is done by the startups, especially those that specialize
in software engineering. The study used literature review,
Turnover intention is significantly high in IT industries
interview and questionnaire methods. The interview was and socialization aspect and leadership are the most
conducted with the leaders of six startups in Yogyakarta, while significant factors in determining turnover intention across all
questionnaires were distributed to employee in each startup who industry sectors [6]. High turnover rates can affect workplace
have worked for about one year. The data of the questionnaire productivity [7]. When an employee leaves the workplace,
were analyzed using descriptive statistics. Based on the results, another employee must replace the work of the leaving
it was found that all startups have done the five aspects of employee. This causes the productivity level to be lower
onboarding on their new employees. But the average value on among the remaining employees. Companies need to find new
these five aspects is below 80%. The lowest average score of 67% employees again and the remaining employees need to divide
is in the documentation aspect. While the lowest sub aspect is a their work time because they should train and assist the new
sub aspect of developer-oriented documentation with an average employee [8]. The poor and disorganized implementation of
value of 58.22% and this is included in enough criteria. new employee onboarding becomes one of the causes of a
high employee turnover rate because the new employee are
Keywords— startup, new employee, turnover, onboarding not able to understand their job descriptions, tasks and what
aspects are expected from them [9]. Hence, the employee will be
I. INTRODUCTION dissatisfied from their jobs. Employee onboarding, turnover
and job satisfiaction have an effect on employee retention.
Success attained by a company cannot be separated from Companies must strengthen their onboarding processes as one
the role of human resources that can help in the company way to increase retention, improve employee satisfaction and
improvement. Loyal employees are very important for the lower turnover rates [10]. The percentage of the likelihood of
sustainability of the company especially for company that new employee to stay in a company up to three years is 69%
have just started or called startups. Before placing employee when they have a good onboarding process [2].
in a certain position, they need to be introduced to the work In order to get the appropriate information about the
environment and jobs that they have to do. It aims to enable business goals for new employees, the company needs
them to adapt well in the startup work system. Onboarding is implement an onboarding process in good preparation. The
a process that can help the new employee integrate into their onboarding success rate depends on the effectiveness of
company [1]. Onboarding helps new employee adapt onboarding implementation. The onboarding contents must
themselves to the social aspect of their job so that they can cover whole information about the company’s system
quickly become productive and giving contributions to the workflow and the main responsibility of employees. Based on
organization [2]. This is to ensure that their performance will those explanation, this study discussed the analysis of
be alligened to the work culture and the expectation of the startup’s performance during the onboarding aspects
company where they work [3]. implementation, especially for their new employees. In future,
According to [4], there are four main challenges that can this analysis can be used as reference to improve and build a
be found in the onboarding process. The first challenge is lack new suitable onboarding model for startup to guide in carrying
of clear objectives and targets, because many company did not out more structured onboarding.
explain the specific objectives in their onboarding process.
The second challege is the appropriate and accurate II. LITERATURE REVIEW
communication of information to the new employee because
many employee regard that they do not get enough A. Employee Turnover
information and the job assigned to them makes them Startup is a growing business that built with creative
overwhelmed. The third challenge is to balance individual ideas and will continually develop to be a successful

978-1-5386-4739-4/18/$31.00 ©2018 IEEE 603

 2018 10th International Conference on Information Technology and Electrical Engineering (ICITEE)

company [11]. The startup business usually operated in the The transition from an employee candidate to an
field of technology and the product made in the form of employee in a company is a hard enough process, but with an
digital applications. A five year old company may still be a effective onboarding process, it is more easy to get new
startup and continues until the age of ten will begin to grow employee who are connected to their new jobs, their new co-
into a larger company [12]. A study [13] about the success workers, the company objectives and vision. Only some
factors of startup in Yogyakarta states that the factors that can company are aware that onboarding is a critical part of the
affect the success of a startup are good team or human human resources management that can bridge the gap
resources, appropriate timing, ideas and adequate funding. between the candidate’s experience and the life cycle of an
There are five factors that influence the success of the human employee. It has a significant effect on engagement [19]. An
resources of a startup such as recruitment, training, tasks and effective onboarding does not stop on the first day the new
responsibilities, facilities and work environment [14]. employee work but the important dimension of the onboard
Studies show that a software project generally experiences process occurs for 90 days or more of staying in a company
a very high staff turnover, with a rate at 25% and 35% [20]. Software Development Onboarding
annually, which indicates that all staffs can be changed in When new employee worked in a software development
three to four years, so that it increases the risk of the delay in startup, they have to understand the scope of the software
doing the software project [15]. American Fortune Magazine development. New employee has to understand the landscape
reported that staff turnover has become a culture in the IT of the software development project such as product
industry, that has the average work schedule of only 13 architecture, team communication strategy, and development
months [15]. The same is true for a startup with a disorganized process. In a study [21] there were some project landscape
management, whose employee role is flexible, often features as the bases that need to be known and learned by
unspecific, or even unclear [16]. This phenomenon can cause
new employee of software developer. The following are some
a low employee job satisfaction in the company which can
trigger a turnover. software project landscape features.

B. New Employee Onboarding Process 1. Product. A product produced is central of the project
landscape. Some aspects that are related to product are
Onboarding that is known as an organizational software development architecture, low-level design and
socialization is a process for new employee to acquire runtime behavior, design and implementation rationale,
knowledge and skill to become successful employee in the
product/domain, and technology used.
company [17]. Onboarding process has an aim to introduce
the new employee to the culture of the company (corporate 2. Processes and Practices. The processes and practices
culture) [18]. Onboarding experience and turnover intention adopted by the team for developing a product influence
have mutually opposite relations [6]. The higher the how the new employee learn the project landscape and
onboarding experience the lower the turnover intention and find the characteristics of the flow used by the team
vice versa. There is a positive and significant correlation members. Some aspects related to the processes and
between self-efficacy and turnover intention which is practices are development process, task process,
mediated by orientation experience. According to [2] there are development environment and tools, and software
four main aspects in the onboarding process, there are configuration management.
compliance, clarification, culture, connection. 3. Team. All employees in doing a project have their own
roles and communicate with each other to work well
1. Compliance is a basic level that includes teaching new
together. New employees must learn how they work
employee about the rules and regulations, legal basis and
together in jobs and find an efficient way to get
policies. In addition, it also informs the employee about
information and help from other employee. The aspects
work documents, identities, email account, computer, and
that are related to the team are roles and expertise, formal
workstation according to the needs of a particular job.
meetings, communication strategies, assistance/
Company that are capable of exercising compliance
mentoring culture, and physical layout.
effectively will be able to train its employee more easily
4. Documentation. There are many documents produced
to follow the habit in the company so that they are not
during an execution of the project that can help new
overburdened.
employee to learn about project landscape. The aspects
2. Clarification is related to the details and context of an
that are related to documentation are developer-oriented
individual job, including the understanding of the
documentation, learning material, and repository, indexes
requirements of the job, the standard of work completion,
and search.
and how things are explained internally and externally.
5. Context. A project landscape is a part of a broader context
The earlier the new employee understand their jobs, the
that consists of organization and inter-team organization.
more quickly they become more productive.
Understanding organization and inter-team organization
3. Culture refers to the teaching about the company culture.
helps new employee to understand the scope of their jobs.
Just like an individual who has a personality pattern and a
different expectation, a company also has the same things. III. RESEARCH METHOD
The earlier the employee understand and interpret the
This study was conducted by interviewing and distributing
company culture and subcultures, the better the questionnaires to six startups in Yogyakarta. The six startups
opportunity for them to get a long term success. are randomly selected and have different specifications. The
4. Connection refers to the interpersonal relation, startups observed are startups in the field of software
mechanism support and information network that have to engineering.
be built by the new employee at the time they enter a new
company.

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 2018 10th International Conference on Information Technology and Electrical Engineering (ICITEE)

A. Startup Spesification 7 participants in Startup E (M=6, F=1) and 9 participants in

We observed six startups which have different Startup F (M=9, F=0).
specifications in age and number of employee. Table 1 There are five aspects measured in the questionnaire such
as product, processes and practices, team, documentation and
explains the specification of each startup.
context. In the questionnaire, there are 25 questions using
Table 1. Startup Specification Likert scale with 5 choices of answers and 3 open questions.
Working Daily There are 6 questions for product aspect, 4 questions for
Number of
Startup Age days in a working process and practice aspect, 6 questions for team aspect, 3
employee
week hours questions for documentation aspect and 6 questions for
Startup A 7 years 28 5 days 8 hours context aspect. Open questions relate to the perceived
employee deficiency in the onboarding process, obstacles during the
Startup B 5 years 35 5 days 8 hours onboarding process and suggestions for improvements to the
employee onboarding process at startup.
Startup C 5 years 35 5 days 8 hours
employee E. Data Analysis
Startup D 3 years 18 5 days 7 hours Data analysis using quantitative descriptive statistical
employee analysis. The results obtained from the analysis of the
Startup E 2.5 22 5 days 7 hours questionnaire data given to employees on each startup.
years employee Descriptive statistics are used to calculate the average value of
Startup F 2.5 15 5 days 8 hours employee’s answer on each startup for each aspect that is
years employee measured.
The six startups have the characteristics that three statups
IV. RESULT
have run their business for 5-7 years with the number of
employee between 28-35 and three other startups have run Based on the calculation of questionnaires that have been
their businesses for 2-3 years with the number of employee filled by new employees at each startup, the five aspects of
between 15-22. The number of working days in a week for all software development onboarding analyzed are product,
startups is five days. 4 of 6 startups have daily working hours processes and practices, team, documentation and context.
per day is 8 hours and 2 other startups is 7 hours. Each aspect has several sub aspects that are measured.
B. Literature Review Table 2. Data of Calculation Result on Context Aspect
Sub Aspect of Context
Literature review was conducted to collect sources from Startup
Organizational Inter-team organization
journals and proceedings both national and international that A 76.43% 72.86%
are related to onboarding process. The results from the B 85.91% 89.09%
literature review were used as the reference to determine the C 75.42% 68.33%
aspects that need to be considered by startups in holding an D 85.56% 82.22%
onboarding for their new employee. E 79.29% 81.43%
F 74.44% 72.22%
C. Interview Average 79.51% 77.69%
The aim of this interview was to find out how the work Total 78.60%
system was in each startup and how the six startups ran
onboarding for their new employees. The interview was done Table 3. Data of Calculation Result on Product Aspect
Sub Aspect of Product
to explore the onboarding process prepared by the startups for Design
their new employees. Some aspects measured in this Low
& Imple-
questionnaire are related to the onboarding aspect consisting Software Level Tech-
Startup menta- Product/
Archi- Design & nology
of compliance, clarification, culture, connection [2]. In the techtur Run-time
tion Domain
Used
onboarding process at startup focusing on the field of software Rasio-
Behaviour
development, there are aspects of development that need to be nale
A 77.14% 74.29% 74.29% 72.86% 68.57%
considered in the process of onboarding new employees such B 89.09% 85.45% 89.09% 90.91% 92.73%
as product, processes and practices, team, documentation and C 76.67% 71.67% 78.33% 76.67% 88.33%
context [21]. D 84.44% 73.33% 82.22% 81.11% 80.00%
E 82.86% 80.00% 82.86% 78.57% 85.71%
D. Questionnaire F 71.11% 73.33% 73.33% 73.33% 71.11%
The aim of this questionnaire was to obtain information Avera-
80.22% 76.35% 80.02% 78.91% 81.08%
from the startup employees that is related to what they ge
obtained from the onboarding. Getting information from the Total 79.31%
employees about the way the startup welcomed the new
employee, the way the startup gave directions to the new Table 2 shows the data results for the context aspect. In
employee and the materials in the onboarding process that the context aspect there are two sub aspects namely
were obtained by new employees. The number of participants organizational and inter-team organizational. The average
at each startup is different. The questionnaires given to value of organizational sub aspect for all startups is 79.51%
employee in each startup who had worked for about 1 year. and the average value of inter-team organization sub aspect
There are 7 participants in Startup A (M=4, F=3), 11 is 77.69%. Total percentage for the context aspect is 78.60%.
participants in Startup B (M=8, F=3), 12 participants in According to the criterion of score interpretation based on the
Startup C (M=8, F=4), 9 participant in Startup D (M=5, F=4), interval, the percentage value 0% -19.99% = very bad, 20% -
39.99% = bad, 40% - 59.99% = enough, 60% - 79.99% =

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 2018 10th International Conference on Information Technology and Electrical Engineering (ICITEE)

good and 80% - 100% = very good [22]. Based on these average value below 80%. In the sub aspect of development
criteria, the context aspect is in good criteria. In the process and task process, there are three startups that have an
organizational sub aspect, two startups are in very good average value above 80% and there are in very good criteria.
criteria with percentage values above 80% and four startups While in sub aspect of development environment and tools
are in good criteria with a percentage value below 80%. and sub aspect of software configuration management, there
While in the inter-team organizational sub aspect, there are are four startups with average value above 80% and two
three startups in very good criteria and three other startups are startups with average value below 80%. The overall total
in good criteria. From the overall percentage in the context average value for aspect of processes and practices is 78.20%
aspect, it shows that the lowest score is in the sub aspect of and this is in good criteria.
inter-team organizational.
Table 3 shows the calculated data for the product aspect. Table 5. Data of Calculation Result on Team Aspect
In product aspect, there are five sub aspects, namely software Sub Aspect of Team
Assis-
architecture, low level design & runtime behavior, design & Role and
Commu-
tance/ Physi-
implementation of rationale, product/domain and technology Startup Formal nication
Exper- Mento- cal
Meeting Strate-
used. The overall average value in each sub aspect are sub tise
gies
ring Layout
aspect of software architecture = 80.22%, sub aspect of low Culture
A 77.14% 65.71% 70.00% 85.71% 80.00%
level design & run-time behavior = 76.35%, sub aspect of B 83.64% 90.91% 89.09% 87.27% 94.55%
design & implementation rationale = 80.02%, sub aspect of C 71.67% 68.33% 81.67% 76.67% 83.33%
product/domain = 78.91% and sub aspect of technology used D 64.44% 60.00% 84.44% 77.78% 88.89%
= 81.08%. Based on these values, there are three sub aspects E 74.29% 80.00% 81.43% 85.71% 80.00%
in very good criteria and two sub aspects are in good criteria. F 66.67% 75.56% 74.44% 66.67% 80.00%
Avera-
There are three startups that have an average value above 72.97% 73.42% 80.18% 79.97% 84.46%
ge
80% on sub aspect of software architecture. While, in the sub Total 78.20%
aspect of low level design & runtime behavior, only two
startups have an average value above or equal to 80%. In the Table 5 shows the calculated data for the team aspect. The
sub aspect of design & implementation rationale, there are team aspect is divided into five sub aspects, namely role and
three startups in good criteria with an average value below expertise, formal meeting, communication strategies,
80%. For sub aspect of product/domain, there are two startups assistance/mentoring culture and physical layout. The overall
in very good criteria and one of them has an average value total average value for the team aspect is 78.20% and this is
above 90%. In the sub aspect of technology used, two startups in good criteria. The average value in each sub aspect are role
are in good criteria which one of them has an average value and expertise = 72.97%, formal meeting = 73.42%,
below 70% and the other three startups are at very good communication strategies = 80.18%, assistance/mentoring
criteria which one of them has an average value above 90%. culture = 79.97% and physical layout = 84.46%. From these
Sub aspect with the lowest average value is sub aspect of low results indicate that the two sub aspects are in very good
level design & run-time behavior. The overall average value criteria and three other sub aspects are in good criteria. In the
for the product aspect is 79.31% and this is in good criteria. sub aspect of role and expertise, only one startup has an
average value above 80%. In the aspect of formal meeting,
Table 4. Data of Calculation Result on Processes and Practices Aspect
Sub Aspect of Processes and Practices
three startups have an average value below 70%. But one
Software startup has an average value above 90%. In the sub aspect of
Develop- Development
Startup Task Configura- communication strategies, four startups are on very good
ment Environment
Process tion Mana- criteria. Three startups are in good criteria for sub aspect of
Process and Tools
gement assistance/mentoring culture and one of them has an average
A 82.86% 82.86% 82.86% 80.00%
B 89.09% 89.09% 87.27% 87.27% score below 70%. Meanwhile, for the sub aspect of physical
C 76.67% 78.33% 81.67% 80.00% layout, all startups have an average value above or equal to
D 75.56% 75.56% 77.78% 71.11% 80%. The lowest average value is in sub aspect of role and
E 80.00% 82.86% 82,86% 80.00% expertise.
F 73.33% 71.11% 73.33% 73.33%
Average 79.58% 79.97% 80.96% 78.62% Table 6. Data of Calculation Result on Documentation Aspect
Total 79.78% Sub Aspect of Documentation
Developer- Repository,
Startup Learning
Table 4 shows the calculation data for processes and practices Oriented
Material
Indexes and
aspect. There are four sub aspects in processes and practices Documentation Search
A 57.14% 57.14% 85.71%
aspect, namely development process, task process, B 74.55% 81.82% 87.27%
development environment and tools and software C 56.67% 53.33% 74.55%
configuration management. The total average value of each D 53.33% 55.56% 68.89%
sub aspect are development process = 79.58%, task process = E 54.29% 68.57% 77.14%
79.97%, development environment and tools = 80.96% and F 53.33% 68.89% 77.78%
Average 58.22% 64.22% 78.56%
software configuration management = 78.62%. Based on the
Total 67%
average value, sub aspect development environment and tools
is in very good criteria. Three other sub aspects such as
Table 6 shows the calculated data for the documentation
development process, task process and software
aspect. Documentation aspect consists of three sub aspect,
configuration management are in good criteria with an
namely developer-oriented documentation, learning material,

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 2018 10th International Conference on Information Technology and Electrical Engineering (ICITEE)

and repository, indexes and search. The overall average value processes and practices aspect. While Startup D and Startup F
on the documentation aspect is 67% and this is in good have the highest value on the context aspect.
criteria. While, the average value on each sub aspect are sub
aspect of developer-oriented documentation = 58.22% with V. DISCUSSION
enough criteria, sub aspect of learning material = 64.22% Based on the calculation data of new employee
with good criteria and sub aspect of repository, indexes and questionnaire on the six startups shows that most startups
search = 78.56% with good criteria. Based on these results, perform a good onboarding process in terms of management
sub aspect of developer-oriented documentation has the and software development. But based on answers from open
lowest average value. In the sub aspect of developer-oriented questions on 55 employees at six startups showed that
documentation, five startups have an average value below 52.72% of employees said the onboarding process
60% and no startups has an average value above 80%. In the implemented by startup at their place of work has not been
sub aspect of learning materials, three startups have an fully implemented properly. The average value in the context
average value below 60% and one startup has average values aspect at six startups is above 70% and this means the context
above 80%. In the sub aspect of the repository, indexes and aspect is in good criteria, although there is some startup that
search, two startups have an average value above 80% and still has not implemented this aspect maximally. Based on the
four other startups have an average value below 80%. answer of the open question, 14.55% of employees at the six
startup stated lack and constraints on the context aspect. The
results of interviews on each startup also indicate that they
100% have implemented the context aspect in the onboarding
95%
90%
process but only a few startups that recognize directly to new
85% employees on the first day of work. While new employees at
80% Startup A some other startup more independent learning and approach
75%
70%
Startup B with other employees independently. According to interview
65% Startup C results, 4 of 6 startups only provides a brief overview of the
60% Startup D work system and organizational structure at the startup before
55%
50% Startup E new employees start working.
Startup F
Implementation of onboarding on product aspect and
processes and practices aspect on each startup has also been
done well. This will be integrated directly when new
employees work on real projects. Every startup must have
certain standardization like code, framework, and technology
Figure 1. Graph of Implementation Onboarding Aspect in Startup used in every project. Based on the results of the interviews
on six startups, the startup will introduce to the new
employees about the standardization before they start
100% working on the project. However, there are some startups that
just explain it briefly at the beginning and other important
90% things will be explained when the project is running. In
addition, new employees must also be able to learn
80% independently. From the open questions to 55 employees at
startup where they work, 20% of employees stated that there
70% were deficiencies and constraints on the product aspect and
13.33% on the process and practice aspect. Meanwhile, for
60% the team aspect, 21.21% of employees stated that there are
deficiencies and constraints on this aspect. Startups that focus
50% on software development will certainly require a good and
Context Product Processes and Team Documentation
Practices solid teamwork so that the task can be completed properly
and completed on time. The team aspects need to be
Figure 2. Graph of Average Value on Each Aspect of Onboarding considered well for the convenience of new employees.
However, some startups do not explain in detail the workflow
Figure 1 shows a comparison graph of implementation and bureaucratic system on their startup. This can lead to
onboarding aspect in each startup. Figure 2 show graph of confusion for new employees with whom they will have to
average value on each aspect of onboarding. Based on these ask first if there are things that have not been understood.
two graphs, it seen that the documentation aspect has the New employees will also need assistance/ mentoring to guide
lowest average value. It is also seen from the onboarding them while working on the initial project to minimize fatal
implementation graph on each startup, which shows that the
mistakes. All startups definitely point their employees to new
documentation aspect is the lowest aspect of all startup. The
employee monitoring, but that is not done intensively.
overall average value for the aspects of context, product,
process and pratices, and team did not show any significant The data of the calculation results show the documentation
difference. But the overall highest average value is on the aspect has the lowest average value compared to the other four
aspect of processes and practices. While the average value of aspects. Based on the open question analysis, 30.30% of
these four aspects on each startup shows varying result. employees stated that there are deficiencies and constraints on
Startup A and Startup C have the highest value on processes the documentation aspect. In sub aspect of developer-oriented
aspect. Startup B and Startup E have the highest values on documentation, five startups are in enough criteria. It is also

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 2018 10th International Conference on Information Technology and Electrical Engineering (ICITEE)

happen in learning material, three startups are in enough 2009.

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