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Employee onboarding is more than just an administrative process; it's a critical phase that shapes the journey of new hires within an organization. In a competitive market where talent acquisition and retention are critical, understanding the nuanced data around onboarding is essential for forward thinking organizations.
In this article, we dive into the onboarding process, financial implications, as well as the benefits and challenges of an effective onboarding experience.
Leverage Withe's hiring event platform
Streamline your seasonal and high-volume hiring process and hit your hiring targets.
Key Employee Onboarding Statistics to Know
- 88% of employees feel their organization lacks a good onboarding program
- 55% of organizations do not measure the effectiveness of their onboarding programs
- 40% of organizations say that the disconnect between hiring and the onboarding process is the top onboarding challenge
- 60%+ of employees don’t feel adequately supported, and 18% report no support at all
- Companies with exceptional onboarding programs see a 2.5x increase in revenue growth and a 1.9% improvement in profit margins
General Employee Onboarding Statistics
Employee onboarding plays a crucial role in shaping the overall experience of new hires, impacting organizational productivity, employee engagement, and long-term success. The following statistics provide insights into the current state of employee onboarding:
Lack of effective onboarding programs
- Surprisingly, 88% of employees feel their organization lacks a good onboarding program, signifying a significant gap in meeting employee expectations. (Gallup)
- 36% of employers do not have a structured onboarding process, potentially affecting the overall onboarding experience. (CareerBuilder)
Negative impacts of a lack of structured onboarding
A lack of structured onboarding, reported by 41% of HR professionals, is perceived as harmful to companies, leading to various negative impacts (CareerBuilder) these include:
- Lower productivity (16%)
- Greater inefficiencies (14%)
- Higher employee turnover (12%)
- Lower employee morale (11%)
- Lower employee engagement (10%)
- Lower confidence among employees (10%)
- Lack of trust within the organization (7%)
- Missed revenue targets (6%)
Employee Onboarding Process
Navigating the employee onboarding process is a critical journey for both new hires and organizations. A well-designed onboarding process not only streamlines administrative tasks but also sets the foundation for a positive and engaging work experience.
Effective measurement and cultural integration
- 55% of organizations do not measure the effectiveness of their onboarding programs. (Businesswise)
- Despite 60% of HR leaders recognizing the importance of onboarding as integrating employees into the organization's culture, only 30% of onboarding programs are culture-focused on average. (Businesswise)
- The need for cultural engagement is evident, as 58% of all companies cite it as the most significant influence on onboarding efforts, and 90% of employees decide to stay within the first year, emphasizing the critical role of early engagement. (Aberdeen Group)
Manager engagement and employee preferences
- 72% of employees report that 1:1 time with their direct manager is crucial to good onboarding. (Enboarder)
- 53% of HR professionals believe that an improved onboarding process directly correlates with increased employee engagement. (SilkRoad)
- Employee preferences come into play, with 86% expressing a preference for having some time to ramp up, emphasizing the significance of a well-paced onboarding process. (BambooHR)
Onboarding duration and proficiency
According to the research by CareerBuilder,
- 72% of HR professionals said that they don’t extend their onboarding programs beyond the first month.
- The recommended onboarding duration is 90 days, aligning with the belief that effective onboarding should take at least three months for new hires.
In addition, a longer onboarding duration is supported by the fact that it takes 8 to 12 months for new hires to reach proficiency comparable to their tenured colleagues. Yet, only 28% of businesses offer onboarding programs lasting at least a month. (ClickBoarding)
This thorough approach to onboarding ensures that organizations can effectively integrate new hires, foster cultural alignment, and set the stage for long-term employee success.
Employee Onboarding Challenges
Embarking on the onboarding journey is not without its hurdles, and organizations must navigate these challenges to ensure a seamless transition for new hires.
Top onboarding challenges
The state of employee report by Leena AI revealed that 40% of organizations say that the disconnection between hiring and onboarding is the top onboarding challenge.
| Onboarding challenge | % of organizations |
|---|---|
Disconnection between hiring and onboarding | 40% |
| Lack of employee engagement | 13% |
| Onboarding program being too short | 11% |
| Personalization of new hire experience | 11% |
| Automating workflows | 10% |
Remote hiring challenges
In remote hiring scenarios, organizations encounter unique challenges, as indicated by statistics from Workable,
- 37.4% of HR professionals say remote onboarding/training is the top challenge of remote hiring.
- When asked for the biggest challenges in remote hiring going forward, HR professionals express concerns about candidate engagement (51.7%), candidate onboarding process (49.7%), and candidate evaluation (42.4%) in a remote setting.
Remote worker challenges
Remote workers face distinct challenges during onboarding, impacting their likelihood to stay with the organization:
- 36% of remote workers find the onboarding process confusing, slightly higher than the 32% of on-site employees who encountered the same challenge. (Paycheck)
- Remote workers (63%) are more likely to consider leaving their employers compared to on-site employees (29%). (Paycheck)
This suggests that many remote workers might not feel a strong sense of connection, something that a good onboarding process could help with. It could be a factor making it easier for them to decide to leave the company.
In addition, only 39% of employees feel adequately supported, and 18% report no support at all. (Gitnux)
Information overload and insufficient job information
While providing ample information to new hires is crucial, it's important to avoid overwhelming them. Trying to make them grasp everything about their new roles in a short period can hinder their chances of success.
- 81% of new hires say they feel overwhelmed with information throughout the onboarding process. (Glean)
- Workers are overloaded with apps – 81% of organizations using at least 6 apps/platforms and 33% of organizations using 11 apps/platforms. (Glean)
- Less than half of employers offer a company overview, individual training, or defined goals and expectations for employees. (CareerBuilder)
Role clarity and goal setting challenges
- 64% of employees face challenges due to unclear roles. (Talmundo)
- 29% of companies believe role clarity isn't a significant issue, but it emerges as a top reason for employees likely to leave a new job within six months. (Zippa)
- 60% of companies report that they do not set any short-term goals or milestones for new hires. (Harvard Business Review)
Technology access and infrastructure hurdles
- Challenges related to technology access and workstation issues for 56% of organizations. (Talmundo)
- Almost half (47%) of companies face onboarding challenges due to infrastructure access issues. (StrongDM)
Managerial Challenges and Underutilization
According to Businesswise,
- 57% of HR leaders believe that the lack of bandwidth for people managers is a significant barrier to improving the onboarding process.
- Despite its importance, 76% of HR leaders assert that onboarding practices are underutilized within their organizations.
Technology, AI and automation in onboarding
According to state of employee report by Leena AI,
- 92% of HR professionals are familiar with AI/Automation in hiring and onboarding processes.
- 90% of HR professionals consider automated processes "very important" for their organizations' future and HR function.
- 87% of HR professionals express a "very committed" attitude toward adopting AI for hiring and onboarding.
In terms of the adoption of automated onboarding, the report also reveals that
- More than half of HR professionals believe that an automated onboarding process will increase the productivity of employees and the onboarding function.
- More than half anticipate that automated onboarding may reduce manual efforts in introduction, orientation, HR reporting, and general training.
- 41% of HR professionals expect to adopt an automated onboarding process within the next 6 - 12 months.
- 68% of organizations are already using AI in their hiring and onboarding processes.
Technology in onboarding
- 26.5% of HR professionals report that onboarding technology is missing from their onboarding program. (Talmundo)
- Leveraging technology can improve employee engagement, with HR managers saving 14 hours per week through process automation. (CareerBuilder)
These statistics underscore the critical need for organizations to prioritize and enhance their onboarding processes, aligning them with modern technological advancements to create a more positive and efficient experience for new hires.
Employee Onboarding Benefits
A strong onboarding process stands as a key to organizational success, bringing a myriad of benefits. Studies and stats show it boosts retention, productivity, and enhances employee engagement, confidence, and efficiency.
Retention and productivity boost
- Organizations with a strong onboarding process see an impressive 82% improvement in new hire retention and a remarkable productivity boost exceeding 70%. (Brandon Hall Group)
- 77% of employees believe that easy access to information, without the need for constant assistance, plays a pivotal role in enhancing productivity and keeping them engaged. (Glean)
Positive effects on engagement and confidence
CareerBuilder highlights the positive impact of a well-structured onboarding program, as reported by HR professionals:
| Positive impact | % of HR professionals |
|---|---|
| Increased engagement work | 49% |
| More confidence in their roles | 46% |
| Greater trust in the organization | 45% |
| Greater efficiencies | 44% |
| Higher productivity | 42% |
| Lower employee turnover | 31% |
Integration and cultural assimilation
Findings from the New Hire Study by Talmundo emphasize the onboarding process's role in organizational culture:
- 79% of companies state that the onboarding process accelerates integration into company culture.
- 78% of companies underscore the positive candidate experience resulting from onboarding, cultivating a favorable attitude toward the employer.
Revenue growth and customer satisfaction
Structured onboarding programs manifest substantial impacts on financial metrics, as evidenced by Aberdeen Group:
- Organizations with structured onboarding programs report a remarkable 60% year-over-year improvement in revenue per full-time employee.
- Simultaneously, these companies experience a 63% year-over-year increase in customer satisfaction, showcasing the far-reaching impact of onboarding on both internal and external success.
Furthermore, companies with exceptional onboarding programs see a 2.5x increase in revenue growth and a 1.9% improvement in profit margins. (Zavvy)
Onboarding is important to employees
Additional statistics highlight the perceived importance and satisfaction associated with onboarding:
- 83% of employees believe having an onboarding program in place would be useful, underlining the perceived importance of structured onboarding (Talmundo).
- 52% of employees feel satisfied with their latest onboarding experience, indicating the potential for positive outcomes when effective onboarding is implemented (Paycheck).
Employee Onboarding Experience
With the statistics we’ve shared above, it’s clear the onboarding experience stands as a pivotal factor that can significantly influence the commitment and satisfaction of new hires.
Without providing a thorough onboarding experience for your new hires, they might face challenges in grasping and executing their responsibilities. This could result in a faster turnover rate, making it difficult to keep up with hiring demands.
Diverse onboarding activities
On average, new hires are engaged in completing 54 activities during their onboarding, contributing significantly to their overall onboarding experience (Business Wire). However, 58% of organizations primarily focus their onboarding programs on processes and paperwork, potentially impacting the holistic onboarding experience. (Human Capital Institute)
Key factors contributing to poor onboarding experience
The state of employee onboarding report by Leena AI pinpoints several factors contributing to a suboptimal onboarding experience, including:
- Confusing orientation with onboarding
- Abandoning candidates after offer is accepted
- Overloading new hires with too much information
- Onboarding happens a week or a month later
- Unorganized onboarding process
- Metrics and feedback don’t matter
Positive onboarding experience and employee commitment
BambooHR's insights emphasize the profound impact of a positive onboarding experience on employee commitment:
- Employees who had effective onboarding feel up to 18x more commitment to their workplace, compared to employees who feel their onboarding was less effective
- New hires who have a positive onboarding experience are 3x more likely to feel a strong commitment to their employer
Furthermore, improved onboarding experiences encourage 50% of HR professionals to consider AI and automation, showcasing the positive impact on technology adoption (Leena AI).
Negative onboarding experience and intent to seek new opportunities
Digitate's findings shed light on the potential consequences of a negative onboarding experience:
- Employees who had a negative new hire onboard experience are twice as likely to look for new opportunities in the near future
- After the initial onboarding experience, 20% of new hires are not likely to recommend their place of work or employer to a friend or relative
Influence on decision-making and long-term commitment
Additional statistics underscore the lasting impact of onboarding experience:
- 93% of employers recognize the critical role of a good onboarding experience in influencing a new hire's decision to stay. However, 29% of employees feel their organizations fall short in executing the right onboarding practices. (CareerBuilder)
- New hires typically make their decision within just 44 days, emphasizing the swift impact of the onboarding experience. (BambooHR)
- A great onboarding experience ensures that 69% of employees stick with a company for up to three years. (SHRM)
- 31% of employees have quit a job within the first 6 months, and of those employees, nearly 1 in 5 quit in their first month, and 17% left after the first week. – underlining the critical role of effective onboarding in employee retention. (BambooHR)
- 1 in 3 HR professionals reports that the quality of their onboarding does not meet the standard, highlighting the need for improvement in the onboarding experience. (ClickBoarding)
Financial Aspect of Employee Onboarding
The financial implications of employee onboarding are significant and can have a lasting impact on an organization's resources and productivity. Understanding these costs is crucial for businesses to optimize their onboarding processes and mitigate potential financial burdens.
Investopedia reports that,
- On average, it costs $1,400 to onboard a new employee. This cost is particularly challenging for small businesses with fewer than 1,000 employees, as they have limited resources for training. In contrast, large enterprises with over 10,000 employees experience approximately half the onboarding cost.
- Generally, it takes around six months for a company to break even on a new hire, emphasizing the time and investment required to see a return on onboarding expenses.
In addition, on average, replacing an employee costs between 16% and 20% of that employee's salary, as reported by Peoplekeep. These replacement costs include recruiting, training, and onboarding expenses, further emphasizing the financial consequences associated with employee turnover.
Alarming findings from Enboarder reveal that 35% of companies spend zero dollars on onboarding new hires. This reluctance to invest in the onboarding experience not only hinders employee retention but also jeopardizes the success of the new hire within the organization.
Conclusion
The landscape of employee onboarding is multifaceted, encompassing challenges, benefits, and financial considerations. As organizations strive to create seamless transitions for new hires, the statistics presented underscore the need for comprehensive onboarding programs. Acknowledging these insights, organizations can tailor their onboarding processes to not only address challenges effectively but also leverage the numerous benefits associated with a well-structured onboarding experience.
Continue your exploration into the vital statistics of talent acquisition – we’ve got you covered:
- Top of the talent acquisition funnel: 30+ Job Application Statistics and 30+ Employer Brand Statistics
- Middle of the talent acquisition funnel: 50+ Job Interview Statistics and 50+ Candidate Experience Statistics
- Bottom of the talent acquisition funnel: 10+ Job Offer Statistics
