When Sir Gareth Southgate spoke at BizX he explained that when he took charge of the England football team, he inherited a dressing room with a problem. Senior players had spoken openly about how the camp lacked genuine connection — there was respect between individuals, but little warmth or trust. Players would feign injury to avoid international duty. The environment, in short, wasn’t one that brought out the best in people.
What Southgate did next holds a powerful lesson for every SME business owner who has ever hired a new member of staff.
He set about creating a culture where players felt psychologically safe — where they were encouraged to take risks, express their talent, and show up as themselves. His approach allowed players to think creatively within a psychologically safe environment, where mistakes weren’t shamed but learned from. He made the England camp genuinely enjoyable to be part of, and the results spoke for themselves — players who had previously gone missing with “mysterious” injuries were suddenly proud to pull on the shirt.
Now ask yourself: when a new member of staff joins your business, what environment are they walking into?
The Cost of Getting It Wrong
Too many SME owners treat onboarding as an administrative tick-box exercise — hand over the contract, show them the coffee machine, and leave them to get on with it. The data tells a very different story about the consequences.
Companies with a structured onboarding programme see an 82% improvement in new hire retention, and employees who experience great onboarding are 69% more likely to remain with the business after three years. Flip that around: 40% of employees who have a poor onboarding experience will leave within their first year.
In a small or medium-sized business, that turnover is deeply damaging. Replacing an employee costs between 1.5 and 2 times their annual salary — rising to over 200% for senior or specialist roles. The recruitment cost, the lost productivity, the time your existing team spends covering the gap — it all adds up fast.
And yet, only 12% of employees say their company does onboarding well. That is a remarkable statistic — and a significant opportunity for those business owners who are willing to do it differently.
What Good Onboarding Actually Looks Like
Effective onboarding isn’t a single day — it’s a process. Think of it as the first chapter of a story you want your new employee to stay invested in for years.
It starts before day one. Communicate clearly, set expectations, and make the person feel that joining your business was a great decision. On arrival, don’t overwhelm them with process — focus first on culture, values, and the standards you hold dear. Help them understand not just what you do, but why you do it.
Then comes the Southgate piece: give them permission to contribute. Let them know that you want to see their talent, not just their compliance. Ask for their ideas. Give them enough autonomy to feel trusted, and enough support to feel safe. Make it clear that mistakes are part of learning, not a reason to stay quiet.
Research shows that 70% of new hires decide whether a job is a good fit within the first month — and 29% make that judgement within the first week. Your window to make a positive impression is narrow.
The Bigger Picture for Your Business
For business owners focused on building value and reducing dependency on themselves, onboarding is foundational. Every new hire is either reinforcing your culture or quietly eroding it. A well-onboarded team member becomes a loyal, productive contributor. A poorly onboarded one becomes a distraction, a cost, or a resignation letter.
Southgate turned England from a group of individuals into a cohesive, proud team. Your business deserves the same ambition.
If you’d like to talk about how to build the systems that bring great people in — and keep them — get in touch at rogerpemberton@actioncoach.com . That’s exactly what we’re here for.
