The importance of onboarding should never be neglected, as organizations that invest in onboarding are more likely to see low turnover and high engagement levels. Conversely, the employee’s first negative experience can breed disengagement and unhappiness. This further translates into high-cost talent acquisition and profitability reduction due to low productivity. These onboarding statistics will help you understand the significance of the HR process and how vital it is if conducted properly.
Onboarding Statistics (Editor’s Choice)
- Well-performed onboarding increases employee retention by 82%. (Sapling)
- 69% of workers are more likely to remain in the company that offered them a good onboarding process. (Zippia)
- Organizations that have a good onboarding process increase productivity by 70%. (Zippia)
- Highly engaged employees are 40% less likely to look for another job. (Bonusly)
- 88% of companies don’t conduct good onboarding. (Sapling)
- Companies that automate onboarding tasks register 16% better retention rates. (Zavvy)
- Roughly 35% of organizations spend $0 on onboarding. (Zippia)
- 22% of employees look for another job after a negative onboarding experience. (Pepperdine)
General Employee Onboarding Statistics
1. Well-performed onboarding increases employee retention by 82%.
Onboarding and retention are pretty intertwined. For example, recent employee retention statistics indicate that employees who pass through a good onboarding process are not just more likely to stay but are over 70% more productive.
2. 69% of workers are more likely to remain in the company that offered them a good onboarding process.
Employee onboarding stats show that a positive onboarding experience often results in employees who are more devoted to the company. In addition, new workers who go through a longer-lasting onboarding become more proficient in their job. These results come four months sooner than in companies that do not have onboarding processes.
3. 78% of companies that invested in onboarding reported revenues increase.
Onboarding affects both the recruits and the company. According to recent onboarding stats, the organizations that devote time and resources to improve their onboarding processes benefit in many ways. Besides revenue increase, 64% of respondents said they saw positive results in most of their KPIs. Finally, 54% registered gains in employee engagement metrics.
4. 87% of HR professionals claim buddy programs boost new hires’ proficiency.
Organizations that assign mentors to new hires are more likely to foster their proficiency, effective onboarding statistics show. Furthermore, 56% of new employees would like organizations to include mentorship or buddy programs in their onboarding. They help new employees obtain work skills, socialize with other employees, and integrate into the company faster.
5. One-third of surveyed employees quit their jobs during the first six months.
One-third of employees quitting their jobs on a sample of 1,000 can be quite a number. Especially since 17% quit between the first week and the third month, onboarding stats reveal. This translates into one out of six new employees resigning in the first three months on average, HR statistics show.
6. 50% of workers leave of their free will in the first two years of employment.
The reasons behind this can be many, such as career development, benefits, or salaries. However, most of these issues could be resolved, and there lies the importance of onboarding, statistics show. These topics could be covered in detail and some realistic expectations set with a good onboarding program.
7. Organizations with a good onboarding process increase productivity by 70%.
A strong onboarding process impacts the productivity of the entire organization and the employees individually. Moreover, it makes workers engaged from the very start. The longer the onboarding process lasts (typically a year), the better the effects.
8. 49% of HR leaders plan to hire more fully remote workers after the pandemic.
Based on remote work statistics, almost every second business will have to onboard employees remotely. That might be a demanding task, especially since there are many issues with the onboarding that need to be solved, onboarding stats suggest. However, many HR managers have passed through this transition during the pandemic. So, there’s a lot of experience out there to learn from.
9. Highly engaged employees are 40% less likely to look for another job.
According to statistics, actively engaged employees are less likely to leave the company, with only 35% of them looking for other positions. On the other hand, 58% of actively disengaged workers seek other options. Employee engagement creates emotional commitment to the job and the company’s goals. Yet, it all starts with effective onboarding, stats show.
10. 22% of companies don’t have onboarding programs.
When we talk about successful onboarding programs, it’s important to state that a significant number of companies don't have them. Out of those companies with established onboarding processes, 49% claim they are somewhat successful, while 28% are highly successful. Only 1% claim they are unsuccessful.
11. Formal onboarding boosts manager satisfaction by 20%.
Every part of an organization reaps benefits from a formal onboarding program. However, some of the common issues that can hinder the process are competing priorities, inconsistent applications, inability to measure ROI, insufficient internal resources, and manager’s accountability. According to employee onboarding stats, 72% of employees said that one-on-one time with their superiors was crucial for their onboarding.
12. Companies that automate onboarding tasks register 16% better retention rates.
The lack of technology prevents 36% of HR leaders from automating this process and organizing effective onboarding programs. The companies that employ onboarding software to automate the onboarding tasks boost employee retention. Moreover, task automation leads to an 18% improvement in new hires’ performance.
13. The average company spends $20 on filing a paper.
On top of filing papers, companies spend around $120 for lost documents and $220 for recreating them. That’s why automation, using some form of HR software, leads to savings and contributes to environmental protection by getting rid of paper, onboarding statistics suggest.
14. 55% of companies don’t measure the effectiveness of their onboarding programs.
Measuring the program's outcomes plays a vital role in the whole process. However, 55% of companies lack the right tools to administer it. Other reasons for neglecting onboarding processes are managers’ lack of time (57%) or digital onboarding technologies (39%).
15. After acceptance, candidates on average need to conduct 54 different administrative activities.
For 58% of organizations, onboarding is only about procedures and paperwork. Effective onboarding statistics indicate that extensive onboarding that focuses on companies’ strategic vantage points is likely to be more productive. Also, 33% of the positive onboarding experience consists of networking.
16. A well-designed onboarding plan improves the new employee’s performance by 11%.
Statistics confirm that comprehensive onboarding improves employees’ performance. A recent study found that 77% of employees who went through a formal onboarding reached their first performance goal without problems. Out of those that were unsuccessful, 50% didn’t go through a formal onboarding, performance management statistics show.
Bad Onboarding Statistics
17. 88% of companies don’t conduct good onboarding.
A recent study demonstrated that only 12% of employees think their organization conducted a good onboarding, despite how important it is. Another survey found that only one in 10 employees agrees with the statement that their company has good onboarding practices.
18. Roughly 35% of organizations spend $0 on onboarding.
According to onboarding statistics, the fact that companies spend about $11,000 on recruitment and turnover poses a logical question: why do companies fail to invest in onboarding their hires? One thing is certain, conducting this process properly is as important as acquiring new talent, especially if we consider employee productivity statistics.
19. For 58% of organizations, onboarding primarily revolves around paperwork.
Since more than half of organizations gravitate toward old-style onboarding that includes a lot of paperwork, it’s no wonder only a few employees praise their companies and the process. In addition, employee onboarding statistics suggest that one-third of employees think of their program as inconsistent, reactive, and informal. On the other hand, good programs are more focused on people and have a strategic goal behind them.
20. The average onboarding lasts up to 90 days.
Despite the average onboarding time — between 90 days and a year — onboarding only lasts a week in most companies. In turn, it leaves employees disheartened and devoid of motivation, onboarding statistics reveal. In addition, a week is not nearly enough for new hires to adapt to the company culture, new colleagues, their tasks, and expectations.
21. Over 77% of new employees who left their jobs could have been retained.
Recent studies confirm that new employees are more likely to look for new jobs if they have been improperly onboarded. The average US employer spends around $4,000 and 24 days to hire someone. This cost and time, however, could double due to a negative employee’s experience. There is also a loss of productivity and a strong impact on the morale of other employees that should be considered.
22. 22% of employees would look for another job if they had negative onboarding experience.
Onboarding and retention statistics suggest that almost a quarter of new hires would look for another job if they received a poor onboarding. Moreover, 41%, also a large percentage, said they might look for another job. 51% would do their best and go the extra mile for the company after having a positive experience. Further, 33% only might do the same.
23. Turnover costs companies between 100% and 300% of a replaced employee’s salary.
It’s not only losing and replacing employees but suffering productivity loss. In addition, the cost of replacing an employee is much higher if you consider the time spent on onboarding, which also reflects on productivity loss.
24. 65% of employees are certain they can find a better-paying job.
Based on onboarding stats, most employees are confident about finding a new job that pays better. That just shows how important it is to address their onboarding properly and timely.
25. 60% of companies don’t set goals for their new hires.
Because many companies do not set goals for their recent hires, these reach a point when many of them feel disengaged and unmotivated. According to onboarding statistics, it typically takes around eight months for a new employee to reach full productivity levels. However, without clear goals, it takes them longer, and that often results in high turnover.
26. One in five new employees wouldn’t recommend their employer to friends or family.
After completing their onboarding process, a significant portion of candidates gets disappointed. As a result, they are less likely to recommend their employers. However, employee referrals are one of the most important strategies that help decrease employment costs and raise the bar of brand reputation. Organizations that understand the importance of onboarding are constantly working on it.
Global Onboarding Stats
27. Approximately $37 billion are spent on unproductive employees in the UK and the US.
Onboarding remains an institutional weakness for many organizations. Companies emphasize orientation, administrative procedures, and paperwork rather than means for long-term retention. This leads to disengaged employees in the first crucial period on a new job that turn into unproductive workers later.
28. In the UK, employees scored just 45% of average engagement.
Based on onboarding statistics in the UK, employees don’t score high on the scale of engagement. It is something that effective onboarding can solve to a certain extent. Compared to the UK, this score is 54% in France, 56% in Australia, and 60% in the US. For reference, only Singapore and Hong Kong saw lower engagement levels than the UK. Therefore, one in five workers in the UK leaves their current employer in the first two years.
29. 57% of Canadians feel loyal to their current employers.
On the other hand, this percentage is 70% in other countries. The statistics also show that one in five Canadians is actively looking for a new job, while 43%, although not actively looking, are open to new job opportunities.
30. 51% of employers in Western Canada are trying to improve their onboarding.
In line with onboarding statistics, employers are looking for ways to improve negative experiences that lead to employee turnover in Western Canada. One of the main reasons is avoiding high costs resulting from turnover.
31. One-third of the hiring managers in Australia think that their onboarding process is excellent.
On a sample of 460 Australian HR managers, a more significant portion (51%) believe their onboarding process is good, while 16% claim it’s only sufficient.
32. 59% of Australian managers had employees leaving during their probation time because of the onboarding.
Many Australians quit their jobs during the onboarding process due to poor experiences. When they come to a new office, most of them say they had to wander around to find their station or complete tons of paperwork. As a result, according to onboarding statistics in Australia, 43% of employers lose their employees in the first month.
Customer Onboarding Statistics
33. 86% of people would be more loyal to a business if they were educated about its products.
Employees need a good onboarding process, but so do customers. However, organizations often fail to grasp the importance of onboarding content to educate their customers about their products and services. More than half of customers (55%) said they returned a product because they didn’t know how to use it.
34. Almost 63% of customers mark onboarding as an important factor when purchasing something.
Customer onboarding stats show that the level of post-purchase support customers receive plays a vital part in their decision-making process. Moreover, 62% of customers are willing to pay even more for the same item to a company with a good reputation in that area, customer service statistics indicate.
35. Eight out of 10 users deleted an app because they didn’t know how to use it.
In line with the latest user onboarding statistics, 74% of people watched a video to learn how to use a new app. In fact, 97% of people think it’s the most effective tool for welcoming and onboarding new customers. Additionally, it’s the favorite way to learn about the product for 65% of customers.
The Bottom Line
Even though proper onboarding demands time and sometimes higher costs, the consequences for the company could be worse if this is done poorly. By looking at these onboarding statistics, you can get a picture of how a company benefits from motivated and productive employees. Therefore, either start working more on your onboarding practices if you haven’t already, or maybe invest in some software that helps you achieve your business goals.
How effective is onboarding?
Conducting proper onboarding is important and effective for many reasons. It helps new employees adjust to their roles and the company’s guidelines. Another important reason is that successful onboarding leads to higher employee engagement and productivity rates. Moreover, it reduces the turnover rate.
How long does it take to onboard a new employee?
Based on onboarding statistics, most HR leaders agree that the proper process should last around three months. However, more and more professionals in the field argue that extending the onboarding process throughout the year could benefit the organizations more. This way, companies can increase employee retention and provide a comfortable and possibly productive experience.
What are the four phases of onboarding?
In line with onboarding stats, the first phase includes pre-onboarding. The candidate accepts an offer, and this stage lasts until the first workday. During this time, the employee is usually provided with some administrative support. The second phase continues by welcoming and conducting an orientation for the employee to offer some basic company info and procedures. During the training phase or the third stage, the employee learns about the specifics of their position. Finally, the last phase is meant to ease the candidate’s transition from a new hire to a full-fledged member of the organization.
What are the five C's of onboarding?
According to onboarding statistics, the five C’s of an onboarding process include:
- Compliance – making sure that employee has signed all the important paperwork and has been introduced to the compliance system and norms;
- Clarification – making sure you communicate job-related expectations to the employee;
- Culture – introducing employees to the organization’s values and programs, ensuring they understand its structure and the goals set for the coming year;
- Connection – the manager needs to create a powerful connection with the new employee from the start;
- Check back – it’s important that this process isn’t done after the new hire’s first day or week.
How long does it take for a new employee to be productive?
Employee onboarding statistics suggest that it typically takes up to eight months for an employee to start being fully productive. Sometimes it depends on busy managers who cannot dedicate time to stimulate and drive workers earlier to full productivity levels.
What's the difference between induction and onboarding?
Induction refers more to the practical matters in integrating an employee into a company. It instructs the employee about its work processes and systems and introduces them to the other employees. Onboarding, on the other hand, is a long process of integration by introducing an employee into a company’s culture and fostering their trust-building and socialization. According to onboarding statistics, it connects understanding with performance.
(Investors in People)
What is the main difference between onboarding and training?
Training is just one segment of the entire onboarding process. It covers procedures and tasks, the use of equipment, and work with some technology. On the other hand, the onboarding handles integration and communication of candidates with the company, other employees, and managers and introduces them to the company culture.
Is onboarding paid?
In most cases, onboarding is paid. According to the Fair Labor Standards Act that regulates employment, even training and meetings such as these fall under the definition of work.
Does onboarding mean you are hired?
Onboarding statistics and definitions set the term onboarding to mark a mechanism for integrating new hires into an organization and help them obtain knowledge to conduct their job. Therefore, in most cases, it means you got the job, and the next phase is onboarding.