ONBOARDING HOUSEHOLD STAFF

ONBOARDING HOUSEHOLD STAFF BEST PRACTICES IN MANAGING AN EFFICIENT HOME WHILE MINIMIZING RISK AND EXPENSE BY KIMBERLY A. CASSFORD

TABLE OF CONTENTS Executive Summary... 1 Onboarding: Carving Out Success... 2 Best Practices: Onboarding and Continued Oversight... 3 Preparing for Arrival... 3 Day One: Contributing from the Start... 4 First Days and Weeks: Laying the Foundation... 5 90 Day Benchmark: Conclusion of the Honeymoon Phase... 6 Six Months In: On Target... 7 The First Year: Celebrate and Look Forward... 7 Six Common Onboarding Errors to Avoid... 8 Conclusion... 10 References... 11 TABLE OF FIGURES Figure 1: New Hire Welcome Package Checklist... 3 Figure 2: Day One Checklist... 4 Figure 3: First Days and Weeks: Considerations and Checklist... 5 Figure 4: Professional Development and Training Resources... 6 Figure 5: 90-Day Benchmark: Considerations and Checklist... 6 Figure 6: One Year Considerations and Checklist... 7 ABOUT THE AUTHOR Kimberly A. Cassford, co-founder of Cassford Management, has been providing services for high-networth families and individuals for nearly 20 years. She is a specialist in household staffing and structuring, organization and project management. She holds certification as a Household Manager/Butler, a Cordon Bleu Diploma, and a BBA in accounting. Cassford Management supports single and multi-family offices in household staffing and estate management. Since its founding in 2002, Cassford Management has successfully worked with over 1,000 families, advisors and family offices throughout the United States, Canada, Europe and the Middle East. For more information, contact Kimberly Cassford at kim@cassfordmanagement.com. Copyright 2014 Cassford Management, LLC. All Rights Reserved.

EXECUTIVE SUMMARY High and ultra-high-net-worth individuals and families hire household staff (also known as domestic staff, household help, household domestics or private service professionals) to manage their home or multiple homes so they can focus their time on important family and business matters. "Time is a difficult commodity to buy. Hiring an employee is essentially your attempt to do just that," said Rhonda Guinazzo, Director of Family Office Services at CDL CPA located in West Palm Beach, Florida. Although there are many benefits to employing domestic staff, households struggle with a myriad of issues. All too often, the need to source household staff is immediate and the recruiting process is not managed professionally. This can lead to legal compliances, privacy risks, liability exposure, a decrease in employee retention, sub-par service and low employee morale. "An increase in staff turnover leads to opportunities for conflict," said Tom Hillis, a labor and employment attorney at Titus Hillis in Tulsa, Oklahoma. When a house is not running smoothly or staff coverage is insufficient, employers become concerned that important elements of their home and life will be compromised. "Worry + vulnerability = stress," said Rhonda Guinazzo. What's the most effective solution? ONBOARDING. Yet, it's often overlooked. When well designed, well managed and well executed, onboarding can have a dramatically positive impact on a household's entire operation. It can provide a new hire with a positive feeling of being prepared and supported. This will result in high employee satisfaction and retention. It will also lead to a decrease in expenses caused by high turnover and help establish professional boundaries. Ultimately, when an effective onboarding program is in place, the employers will receive a high standard of service from their household staff. An increase in staff turnover leads to opportunities for conflict including not only staffing, but family issues. This paper is a guide for employers, family offices and households to establish an effective onboarding strategy that spans a new hire's first full year of employment. With insight from interviews with experts in the industry, this paper identifies milestone moments and practical advice on how to develop and execute an onboarding program, and overcome common mistakes. Moreover, it highlights how an estate management consultancy can support the employer, family office and household throughout the entire onboarding process. Copyright 2014 Cassford Management, LLC. All Rights Reserved. Page 1

ONBOARDING: CARVING OUT SUCCESS A proper onboarding program will provide a new hire with the opportunity to understand and carry out their responsibilities effectively while executing a high standard of service to the employer. A study conducted by the Society of Human Resources Management estimates that direct turnover costs are 50-60 percent of an employee's salary. Therefore, onboarding's ultimate payoff is to reduce expenses and encourage employees to work with the employer for a longer tenure. If an onboarding program is not accurately executed, detrimental factors will occur that could lead to termination or a resentful employee departure. "The employer has opened up their home and private matters to a stranger. Disgruntled former employees may become litigious former employees," said Rhonda Guinazzo. "The cost and stress of defending a baseless employment practices lawsuit is something that can often be prevented or defended with good policies, procedures and documentation." Without proper handling in place, unnecessary expenditures could include 1) recruiting commissions, 2) fees for resetting locks and security codes, 3) increased payroll, 4) accounting and legal fees, 5) higher unemployment, and 6) insurance tax rates. In the United States, "the unemployment tax is charged to the employer on each of their employees. Rate increases affect all employees in that state for several years," added Guinazzo. An effective onboarding program should be customized and executed over the course of the first year of employment. Onboarding of a new hire requires the same attention to detail that is involved in the recruiting process. "Time must be set aside by the employer to make the new employee's onboarding experience successful," said Jeffrey Pasek, a labor and employment attorney at Cozen O'Connor in New York City, NY and Philadelphia, PA. An effective onboarding program should be customized and executed over the course of the first year of employment. After one year, significant events in the employer s schedule and household begin to repeat, said Tom Hillis. A yearlong onboarding program allows the employee to fully understand how the household functions. Engaging an estate management consultancy or family office to manage the onboarding process is essential. When managed properly, and clear expectations and support from the employer, the onboarding process offers a seamless adjustment for the new hire, employer and family office. Copyright 2014 Cassford Management, LLC. All Rights Reserved. Page 2

BEST PRACTICES: ONBOARDING AND CONTINUED OVERSIGHT PREPARING FOR ARRIVAL Getting a head start with the onboarding process and customizing the onboarding program to fit the new hire and household goes a long way to adapting and building trust for all parties involved. The onboarding process is designed to help everyone adjust to the major change that there is now a new employee in the household. The program should be tailored to each household, said Jeffrey Pasek. Prepare for the arrival of the new hire prior to the start date by doing the following: 1. Inform and clarify arrival for the first day by providing: 1) start date, 2) time, 3) location, 4) who to report to upon arrival, and 5) a reminder to be prepared to complete payroll information which requires proof of I-9 documentation. 2. Prepare a professional welcome package to present on the first day of hire. See Figure 1: New Hire Welcome Package Checklist. 3. Notify the family attorney, family office, homeowner s and car insurance of new hire. 4. Prepare a schedule of routine tasks and small projects for the first week. Include training to ensure success. 5. Review and set up the employee work area. Ensure the workspace is clean, organized and has all the necessary tools, supplies and equipment. For example, 1) setting up an personal assistant s workspace in a children s playroom or having the house manager work in the kitchen at the family table is not acceptable, and 2) not providing a housekeeper with a housekeeping caddy to tote supplies will result in an unprofessional appearance and a high risk for spillage and accidents. 6. Write or send a welcome note. A brief welcome note from the employer reassures the hire they have accepted an excellent opportunity. NEW HIRE WELCOME PACKAGE CHECKLIST ITEM FORMS/PAPERWORK Personnel documentation Emergency contact information form Employer/employee agreement (includes confidentiality agreement and position description) Copy of employee handbook / code of conduct Payroll & compensation documentation W-4 form I-9 form Health insurance and other benefit forms (if applicable) Direct deposit form (if applicable) Instructional information Copy of house manual / guidelines FIGURE 1: NEW HIRE WELCOME PACKAGE CHECKLIST Copyright 2014 Cassford Management, LLC. All Rights Reserved. Page 3

DAY ONE: CONTRIBUTING FROM THE START While many look at the first day as orientation, it is a very significant day of a new hire s employment. The difference between employee orientation and onboarding is the amount of time spent connecting the new employee to the job, to the team and its values, writes Stephenie Overman, an expert in workplace issues and author of Onboarding: Making a Connection Beyond Orientation. Besides introducing a new hire to co-workers and setting up onboarding conversations, activities the first day should include some basic responsibilities. Getting into the daily routine immediately provides a feeling of contribution from the start. See Figure 2: Day One Checklist. DAY ONE CHECKLIST TASK Begin and end the day with a face to face meeting OBJECTIVE Starting and finishing the day in person will help confirm a sense of belonging. Identify communication style preferences to confirm the most effective way to offer/receive information. Review new hire welcome package checklist (see Figure 1) Arrange introductions Review new hire s workspace Conduct a walkthrough of the entire property Review routine tasks and small projects FIGURE 2: DAY ONE CHECKLIST Ask the new hire to sign and date the new hire welcome package checklist and documents to confirm they have read and understand all items. Make copies of all documents. Give copies to the new hire and file the originals. Answer any questions the new hire may have. Introductions include everyone the new hire will need to work with to be successful. Send an email to staff and suitable vendors announcing the new hire s arrival, and copy the new hire. Review technology, tools, supplies, and equipment the employee will use to successfully carry out responsibilities. Communicate basic information about the home and surrounding area. Review list of routine tasks and small projects planned for the first week. Support (as needed) these tasks with training to ensure success and instant responsibility. See Figure 4: Professional Development and Training Resources. Copyright 2014 Cassford Management, LLC. All Rights Reserved. Page 4

FIRST DAYS AND WEEKS: LAYING THE FOUNDATION The first days and weeks should be spent investing time in formalizing the foundation. In the first few weeks of employment, the excessive amount of information being related to a new employee, often by the employer and many different employer s family and staff members in a brief period of time, can be overwhelming, said Rhonda Guinazzo. Employers should be patient and empathetic during this period. Periodic follow up and feedback during the first eight weeks is crucial. Employers can utilize their consultants to obtain feedback about procedural or other issues that the new employee may be reticent to discuss directly with their new employer. Similarly, the employer can work with the consultant to effect desired changes or improvement in the new staff. This will set the stage for performing successful short and long-term deliverables. See Figure 3: First Days and Weeks: Considerations and Checklist. FIRST DAYS AND WEEKS CONSIDERATIONS AND CHECKLIST TASK OBJECTIVE Stay connected Touching base with the new hire each day is a great way to provide support, help identify and resolve any issues/challenges and increase the potential for good performance. Establish specific goals Formalizing specific tasks and goals early on provides an immediate sense of contribution. It s important to give new hires a combination of less intensive projects to start, and then gradually integrate larger projects. This enables them to think about a variety of responsibilities. Train and educate Organize time for training where needed to ensure the employee s techniques for certain tasks (e.g. expense reporting, serving, ironing, cooking, cleaning) are consistent with the household s standards. For example, an employer may like his shirts pressed a specific way. Ensure the employee knows how the shirts are to be ironed to remain consistent with expectations. Explore additional professional development and skill building opportunities specific to the position. See Figure 4: Professional Development and Training Resources. Debrief and evaluate Organize a debrief after initial tasks and training have been completed. If challenges emerge, address them. It is vital that both parties understand how the employee s performance will be formally evaluated. FIGURE 3: FIRST DAYS AND WEEKS: CONSIDERATIONS AND CHECKLIST Copyright 2014 Cassford Management, LLC. All Rights Reserved. Page 5

PROFESSIONAL DEVELOPMENT AND TRAINING RESOURCES INTERNAL RESOURCES EXTERNAL RESOURCES Cross-training with other staff Books relevant to position Reading the household manual Professional domestic schools Reading all user manuals applicable to position Professional online free tutorials Workshops relevant to position FIGURE 4: PROFESSIONAL DEVELOPMENT AND TRAINING RESOURCES 90 DAY BENCHMARK: CONCLUSION OF THE HONEYMOON PHASE At the end of three months, the honeymoon phase culminates. The new hire has typically completed the trial period and been accepted into the household in terms of health coverage, benefits, sick days, etc. Moreover, several measureable results will be achieved by now and some imperfections could start to show. Conducting a review will assist the new hire to focus on areas where improvement is needed. See Figure 5: 90- Day Benchmark: Considerations and Checklist. 90-DAY BENCHMARK CONSIDERATIONS AND CHECKLIST TASK OBJECTIVE Conduct a review Conduct a formal feedback discussion including performance assessment, goals achieved, areas of improvement required. Jointly develop goals for the next review period. Review training program Discuss continued training opportunities with the new hire. What training has been helpful? Is any additional training needed? Confirm support Assess if new hire is getting the right level of support from colleagues. How can the onboarding manager support the new hire going forward? FIGURE 5: 90-DAY BENCHMARK: CONSIDERATIONS AND CHECKLIST Copyright 2014 Cassford Management, LLC. All Rights Reserved. Page 6

SIX MONTHS IN: ON TARGET At the six month mark, the new hire ought to be on target with making significant contributions to the household by achieving both small and large tasks. An assessment of the employee s performance by reviewing responsibilities and expectations is essential at this time. This will provide an opportunity for both parties to communicate openly, realign and reinforce the commitment for a long lasting tenure. THE FIRST YEAR: CELEBRATE AND LOOK FORWARD The one year anniversary officially marks the end of the onboarding process. At this point, the new hire will be fully engaged and considered a seasoned employee. Relationships with coworkers and vendors should be well established and there ought to be a clear understanding of how the employee s role fits within the household s overall operation. See Figure 6: One Year Considerations and Checklist. ONE YEAR CONSIDERATIONS AND CHECKLIST TASK OBJECTIVE Recognize contributions Celebrate the year of success by recognizing the employee s contributions. This could be as simple as a congratulatory note from the employer. and look ahead Review, clarify, and document future objectives and expectations. Gain formal and informal feedback Request feedback about the onboarding process Clear communication continues to be key. Consider discussing the following questions: o Is the job what was expected? Why or why not? o Are you running into any hindrances in your productivity? What are they and how do they affect you? o How can the manager better support ongoing development? o What future training could be helpful? o What do you feel were your best achievements this year? Consider asking questions related to the onboarding process: o Do you have any suggestions for improving the program? o How can the employer/onboarding manager better support the onboarding process for new hires? FIGURE 6: ONE YEAR CONSIDERATIONS AND CHECKLIST Copyright 2014 Cassford Management, LLC. All Rights Reserved. Page 7

SIX COMMON ONBOARDING ERRORS TO AVOID While the concept of onboarding is simple, delivering a top-notch onboarding program is not easy. If a household s current approach to onboarding demonstrates any of the six errors described below, the household is setting itself up for a high turnover of staff and unnecessary expenses. 1. RESISTING HELP Employing a third-party such as an estate management consultancy to help design and manage an onboarding program that fits the household will prevent the revolving door of staff turnover. 2. MISTAKE ONBOARDING FOR ORIENTATION Defining onboarding as orientation can lead to an immediate misunderstanding. Onboarding is more meaningful and has a much broader goal than just providing an easy route through new hire paperwork. I prefer to see onboarding as an ongoing process of orientation and reorientation, albeit with milestones, that lasts for a career, said Jeffrey Pasek. 3. STARTING AND ENDING THE ONBOARDING PROCESS THE FIRST DAY Onboarding begins the moment the offer is accepted and continues for up to 12 months. This gives a new hire time to build credibility, trust and confidence. The employer needs to commit to helping that employee be successful throughout the onboarding process, understanding that new staff have many challenges that can include conflicting or partial instructions, as well as conflict with other staff, said Rhonda Guinazzo. Copyright 2014 Cassford Management, LLC. All Rights Reserved. Page 8

4. OVERLOADING AND OVERWHELMING Providing a new hire with a large volume of information and questions in a short amount of time can result in sensory overload and unrealistic expectations. Putting new employees, who are usually already apprehensive, under this kind of pressure makes it unlikely that they will ask the right questions, make smart decisions, and remember a majority of the information provided to them. 5. LACK OF RELEVANT TOOLS AND TRAINING Every new hire needs the correct tools, supplies, equipment and workspace to perform efficiently. For example, an estate manager will require relevant technology such as hardware, software, and cloud accounts that make them productive. Just as important as having the right tools is training on how to use these tools, says Microsoft certified trainer and former personal assistant Vickie Sokol Evans. Research shows, that without training, employees use only 13% of an application s capabilities, which increases the time it takes do get something done, missed deadlines and errors. 6. OVERSTEPPING BOUNDARIES More often than not with a new hire, the employer may overstep boundaries. It is critical for all parties to mutually respect each other s personal time outside of work. Defining boundaries helps limit after hours abuse such as texting, emailing or calling for non-urgent matters. Copyright 2014 Cassford Management, LLC. All Rights Reserved. Page 9

CONCLUSION The pressure to retain household help and further productivity has never been greater. "Turnover is costly, risky, time consuming and stressful for all," said Rhonda Guinazzo. Such stress is driving a vast majority of highnet-worth households to take a more strategic and proactive approach that is far beyond traditional employee orientations. The result sets the stage for high performance deliverables. An effective onboarding program requires backing and efforts by the employer, the new hire, family office and estate management consultancy. When properly executed, onboarding can contribute significantly towards efficient household spending and a happy home. Using milestone moments [in the onboarding process] as an opportunity to reorient both parties to the needs and expectations of the other can be a critical factor to enhance the chance of a long and productive working relationship. Using milestone moments [in the onboarding process] as an opportunity to reorient both parties to the needs and expectations of the other can be a critical factor to enhance the chance of a long and productive working relationship, said Jeffrey Pasek. Following the checklists of milestone moments in this paper and working closely with the household s internal team and an estate management consultancy to support the onboarding process will ensure success. Copyright 2014 Cassford Management, LLC. All Rights Reserved. Page 10

REFERENCES Allan, David. Retaining Talent: A Guide to Analyzing and Managing Employee Turnover, SHRM Foundation s Effective Practice Guidelines Series, Society of Human Resources Management, 2008. Evans, Vickie Sokol. Microsoft Certified Trainer and Bestselling Author of the Tips in Minutes series for PC and Mac. President, The Red Cape Company, LLC. Austin, TX. Phone interview, December 27, 2013. Guinazzo, Rhonda. Director of Family Office Services, CDL. West Palm Beach, FL. Email interview, December 12, 2013. Hillis, Tom. Labor and Employment Attorney, Titus Hillis. Tulsa, OK. Phone interview, December 12, 2013. Overman, Stephenie. Onboarding: Making a Connection Beyond Orientation. Society of Human Resource Management, 2005. Pasek, Jeffrey. Labor and Employment Attorney, Cozen O Connor. New York City, NY and Philadelphia, PA. Email interview, December 12, 2013. Copyright 2014 Cassford Management, LLC. All Rights Reserved. Page 11