August 16, 2024
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Onboarding new employees is a vitally important challenge for all companies. Finding the right talent for each role – someone who has the skills and knowledge to contribute to the company’s success, but is also in tune with its values – requires great effort and dedication.
However, according to Gallup, only 23% of employees thrived in their jobs during 2023, while 59% joined the dreaded trend of ‘quiet quitting’, and 18% demonstrated active disengagement. Much of the blame for these statistics can be pinned on the onboarding process, an essential corporate practice designed to ensure that new hires are integrated as quickly as possible and feel part of their new company.
However, If you’re still not convinced of its importance, then this article will provide you with a number of key insights into onboarding statistics, to highlight exactly why you should invest in a solid onboarding process.
The onboarding process involves not only welcoming new employees, but also properly integrating them to ensure their long-term success within the organization. A well-designed onboarding process can have a positive and significant impact on all aspects of employee retention, satisfaction, and productivity. To help you see these benefits more clearly, we’ve put together some of the most important onboarding statistics for you:
Onboarding success rates are a key indicator of the impact these programs can have on a company. They can be measured through parameters such as: employee retention; initial productivity; employee satisfaction; and the time taken for a new employee to fully integrate into their new team and company culture. The following onboarding statistics highlight the importance of investing in a well-structured and planned onboarding process:
One study found that for new employees, good experiences during their first few months at the company have a significant impact on their decision to stay or leave.
On average, companies have roughly 44 days to significantly influence the long-term retention of their talent. 29% of employees decide whether to stay within their first week, while 70% of them do so within the first month.
In order to achieve a high onboarding success rate, companies should focus on several key factors:
We’ve seen so far that the onboarding process is a fundamental part of any employee’s professional cycle, but of course, it does involve a significant investment for the company. The costs of the process cover various phases such as recruitment, training, adaptation time, the provision of benefits and compensation, and administrative costs. Understanding that each step of the process is valuable is key to developing strategies that are both effective and efficient. The statistics below highlight the importance of these cost-related issues:
Staff turnover leads to some of the highest costs. Whenever a high-performing employee leaves the company within their first 6 to 12 months, the cost to the company is around 20% of the employee’s salary. On top of this, filling the vacancy will then bring on additional hiring costs. However, even if an employee who experiences a bad onboarding process chooses to stay, they are more likely to feel disengaged at work, resulting in a cost to the company of around 18% of their salary.
Any increase in new employee productivity leads to savings in time and money for companies. A recent SHRM report found that organizations with an effective onboarding process benefit from employees who are 50% more productive.
According to Gallup, lack of employee engagement is responsible for multi-billion dollar losses in productivity each year. Therefore, strengthening employee engagement should be one of a company’s highest priorities from day one. The most effective tool to achieve this is the onboarding process.
In order to minimize costs and maximize ROI on onboarding, companies can implement a number of key strategies:
If there is one very important thing that companies and HR departments should strive to understand, it’s that the onboarding process is not simply about complying with legal and administrative requirements. Instead, it is a shining opportunity to establish a strong, healthy and positive relationship between the company and its new talent. Understanding what employees really value and require during their onboarding can make an enormous difference to their levels of satisfaction, commitment and productivity in the long term. So what do employees really want? Let’s take look at some relevant onboarding statistics:
Training employees in processes, and ensuring that all relevant tools and equipment is ready for them should be a mandatory component of any onboarding process. This ensures that employees do not become frustrated, and helps to prevent loss of time and additional costs to the company. Despite this, a survey conducted by Talmundo revealed that a surprising 43% of new employees had to wait more than a week for their working tools and logistics to be ready. Even then, 18% of them still hadn’t received the tools they needed to start working after two months.
A study by PWC, on the features that make a company more attractive to employees, revealed that 35% of respondents value training and development initiatives as amongst the top three most important offerings.
There are a number of actions you can take to improve your onboarding process and ensure that it meets employee expectations:
Every onboarding process presents a series of challenges that can afflict both new employees as well as the company as a whole. Some of the most common include: a lack of structure to the onboarding process; information overload; inadequate social integration; the scattered nature of remote work; and even technical challenges and lack of feedback. Let’s take a look at some onboarding statistics that illustrate these challenges more clearly:
One of the biggest challenges during any onboarding process is managing to clearly communicate the company’s values and mission at the same time as explaining a new employee’s professional responsibilities. One study revealed that only 39% of employees consider their onboarding process to be clear, while 32% of them rated it as confusing, and 22% as disorganized.
Digitization, as well as the dramatic changes that many workplaces have recently undergone, have also impacted onboarding statistics. In fact, many companies claim that a purely online onboarding process requires significantly more effort. Unsurprisingly, a high percentage of remote employees feel poorly trained during their onboarding processes, with 60% of them reporting that they feel disoriented, and 36% of them feeling confused.
Yes! And a big part of those solutions lies in creating consistently well-structured and coherent onboarding plans. Try the following useful tips:
When not managed properly, an onboarding process can have a number of significant negative consequences. A range of studies and statistics reveal some of the most common problems encountered during onboarding, emphasizing the need for a more careful, strategic approach.
So, to conclude, here are some of the most revealing negative statistics concerning employee onboarding, and what these numbers mean for companies:
Many companies focus their onboarding efforts onto a single orientation day with an accompanying information package on benefits. This inevitably results in a poor onboarding experience.
A poor onboarding experience has a significant impact on staff retention and morale. According to recent studies, after their most recent onboarding experience, 52% of employees said they felt let down by their company, while 56% felt disoriented and 49% even felt devalued as a person.
Finally, Gallup statistics assert that a very low percentage of employees feel satisfied with their onboarding process. This data reveals that many companies lack a defined strategy, or one effective enough to captivate attention and strengthen employee commitment.
We’ve taken a close look at a number of key statistics and data on onboarding, which together reveal the importance of a well-structured and strategic process. Investing in an effective onboarding process can significantly improve employee retention, satisfaction and productivity, which ultimately benefits the entire organization.
If you want to learn more about how to create an effective onboarding plan, then we invite you to read our detailed guide to creating transformative experiences for your new employees. And, if you want to go even further, then we recommend trying isEazy Engage, a unique platform designed to make employee onboarding more interactive, engaging and efficient. Digitize and optimize your onboarding process, make the whole process smoother, interact more effectively with your team, and boost their engagement and productivity from the very first moment. And all this, in just one app! So what are you waiting for? Request a demo today!
Employee onboarding is so important because it sets the tone for the proper integration and success of new team members. A good onboarding process helps employees to clearly understand their roles, their company culture, and wider organizational goals.
The onboarding process should last between 90 days and six months, depending on the complexity of the role and the organization. A well-structured onboarding period allows employees to gradually adapt to their responsibilities, and get used to their new work environment.
An effective onboarding program should include a formal welcome, role-specific training, integration with the company culture, clear goal-setting, and the provision of solid feedback. Additionally, you should also assign a mentor or experienced coworker to guide each new employee.
A good onboarding process has a direct influence on employee retention. When new employees feel welcomed, valued, and properly trained, they are much more likely to stay with the company in the long term. Statistics show that organizations with strong onboarding processes enjoy an improvement in employee retention of 82%. Using tools like isEazy Engage can streamline the process even further, creating a positive experience from day one.
Any tools that facilitate the automation of administrative tasks, or help you to streamline the delivery of training content and monitor employee progress, will help you enormously. isEazy Engage is an excellent option to digitize and enhance the onboarding process, offering a fully interactive and personalized experience for new employees.
The best practices for virtual onboarding include establishing clear and consistent communication, using video calls for presentations and training, providing easy access to digital resources, and encouraging social integration through virtual, collaborative activities. Additionally, it’s crucial to ensure that new employees always have access to the tools and support they need from day one.
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