Table of Contents
Table of Contents
Onboarding a new employee effectively is almost as critical as the recruitment and selection process itself, and it has a significant impact on employee retention. Onboarding practices vary immensely, but a well-structured onboarding process that continues past an employee’s first day can lead to much greater productivity later.
This article collates onboarding statistics from credible sources and research that may help you to decide your own onboarding approach.
A great onboarding experience improves employee retention and saves companies money
The onboarding process impacts employees’ productivity and engagement
Most companies aren’t prioritizing onboarding as much as they should be
Onboarding is about more than paperwork
Onboarding takes longer than most people realize
New hires need social support to get the most out of onboarding
Professional development conversations are a crucial part of onboarding
A great onboarding experience improves employee retention and saves companies money
A poor onboarding experience can fail to achieve employee engagement and result in a new hire seeking other opportunities quickly. The cost of replacing a new employee, in addition to the original cost of hiring, can be very high. An onboarding process can take some time and investment up front; however, the long-term benefits and potential cost-savings are substantial.
An effective formal onboarding process can improve employee engagement and job satisfaction quickly. Strong onboarding helps to address early issues a new hire might be experiencing and increases their commitment.
A strong onboarding process improves employee retention by 82%
A formal onboarding program can lead to 50% greater employee retention.
A negative onboarding experience makes employees twice as likely to seek new opportunities soon after starting their new job
When poor onboarding leads to an employee leaving, it can cost up to 200% of the employee’s salary to find a replacement
Up to 20% of employee turnover occurs during the first 45 days of work
17% of employees leave a new job between week four and week twelve of their new role
Employees feel 18 times more commitment to their workplace after effective onboarding.
The onboarding process impacts employees’ productivity and engagement
Committed and engaged employees who understand their job and their workplace become more productive, faster.
Strong and structured onboarding processes give employees early understanding of their roles but also support that can improve their motivation. Healthy motivation in a job will always lead to greater productivity and a more vibrant workplace.
A strong onboarding process can improve productivity by over 70%
A formal onboarding program can lead to 62% greater productivity.
89% of employees who receive effective onboarding feel “engaged” at work and are 30 times more likely to feel job satisfaction
Employees who rate onboarding at “5” on a 5-point scale are twice as likely to agree they feel prepared and supported to excel in their new job.
41% of employers believe the lack of a structured onboarding process has a negative impact on their company.
49% of employers report higher employee engagement from a structured onboarding program
Most companies aren’t prioritizing onboarding as much as they should be
There is clear evidence to support the benefit of an effective employee onboarding process, but often onboarding can be an afterthought to the hiring process.
When employees receive just a simple introduction to their workplace, colleagues, and job, the benefits of a longer and more defined onboarding program are overlooked.
Onboarding has the 2nd highest impact, after recruiting, of all HR practices
Only 12% of employees say their company does a great job of onboarding
36% of employers lack a structured onboarding process.
76% of HR leaders say onboarding practices are not used enough.
87% of employees who rated their onboarding experience positively also say they feel clear about their job role.
35% of companies have zero spend on onboarding.
Onboarding is about more than paperwork
A formal onboarding process might include health and safety documentation and other inductions to workplace practices, as well as setting up an employee’s access to systems and gathering their payroll information.
A strong onboarding process can include other activities such as meetings with managers and colleagues and company culture training. There are also alternative approaches to consider, such as virtual or interactive onboarding techniques, which are especially important in today’s age of remote working.
The average new hire is assigned 41 administrative tasks to complete
Employees are 3.4 times more likely to agree their onboarding experience is exceptional if managers take an active role in the process
Advanced onboarding programs can lead to an ROI 10 times higher than traditional programs
54% of companies have adopted virtual onboarding
91% of employees who receive company culture training feel connected to their workplace
23% of employees who left a job within six months said clearer guidelines on their responsibilities would have encouraged them to stay
56% of new hires say meeting an onboarding buddy just once in 90 days helped them to become productive faster
Onboarding takes longer than most people realize
There can be many elements of an effective onboarding process, from filling out lengthy paperwork to arranging meetings and conducting on-the-job training. But onboarding can still be perceived as just processes, introductions, and workplace tours that happen in the first few days. In fact, onboarding may also encompass the employee’s entire learning curve that happens from day one on the job until they reach their full productivity.
New hires need social support to get the most out of onboarding
We’re starting to see how onboarding practices differ between employers. Onboarding a new employee can be a quick, paperwork-focused process or a more involved one.
In our digital and remote working age, automated onboarding processes are quickly becoming more common. There is, however, evidence to suggest incorporating a social experience or even social networking into an onboarding program can make an employee more productive.
58% of onboarding programs primarily involve processes and paperwork
33% of high-performance onboarding programs include social networking
87% of companies find assigning a mentor or buddy for onboarding is very effective
33% of quality onboarding programs build social networking into the onboarding process
56% of new hires say meeting an onboarding buddy just once in 90 days helps them to become productive faster
Only 24% of workers feel connected to their colleagues
1 in 3 HR professionals say the quality of their onboarding isn’t good enough
Professional development conversations are a crucial part of onboarding
We’ve seen that onboarding processes described as strong, advanced, or effective can all lead to much greater productivity and a better ROI for employees. These onboarding processes might include paperwork and meetings, time with colleagues and managers, and they can also include professional development conversations.
A new hire may have been attracted to a job because of the opportunity for career progression. To keep them motivated and help them understand how they achieve their goal, early conversations around how they can develop might be necessary.
A clear plan for professional development makes employees 3.5 times more likely to agree their onboarding process was exceptional
77% of employees who had formal onboarding hit their performance goals
66% of employees who have structured onboarding are likely to stay with the company for more than three years
23% of employees who left a job within six months said clearer guidelines on their responsibilities would have helped them to stay
60% of companies don’t set goals for new employees
Start Improving Your Onboarding Process Today
You’ve seen the numbers. Now, let’s take a look at a few things you can do to improve the onboarding experience for every new hire who comes your way.
- Treat onboarding as an investment. Many companies don’t put much thought into the onboarding experience, and they end up losing time and money through turnover and lost productivity. Take your time learning how to onboard the right way, and you’ll find that your people are more engaged in their roles and ready to tackle their work. To go the extra mile, collect feedback about the onboarding process so you can continually improve it.
- Provide new hires with social support and a clear career path. Onboarding doesn’t last forever, but it’s a great time to help new hires build connections and get a vision of what their time at your organization will look like. Assigning onboarding buddies and emphasizing your learning and development program will help every hire feel more confident with their new job.
- Automate the onboarding process. New hire paperwork is critical, but often tedious—especially if you’re asking the new employee to fill out paper forms by hand. Make the process smoother for everyone by using onboarding software to sign and store important documents.
Choose a great onboarding software. Eddy’s onboarding software includes digitally-signable documents, secure document storage, trackable task lists, custom first-day messages, and more. Learn how Eddy can help you onboard more efficiently
Create a memorable first day in minutes with Eddy
Onboarding software that helps you stay organized, maximize time, and save trees.
Eddy is the all-in-one HR tool built with you in mind. The robust features and ease of use will benefit your company both inside and outside your HR team.
