10 Essential Employee Onboarding Statistics You Must Know

benefits of onboarding employees

Strategic employee onboarding remains a significant focus for numerous organizations. According to the Human Capital Institute, companies that enhance the onboarding experience are more likely to witness critical benefits, including increased engagement levels, reduced time to proficiency, and decreased turnover.

The most innovative companies recognize building an effective onboarding program as an iterative and continuous process. Whether initiating a new program or being an experienced professional, explore these ten essential employee onboarding statistics for comprehensive insights.

Great Employee Onboarding Can Boost Employee Retention

BY 82% Research conducted by Glassdoor reveals that organizations with a robust onboarding process witness an 82 percent increase in new hire retention and over 70 percent improvement in productivity. Engaging and retaining employees from day one becomes crucial in a competitive job market with abundant options. A robust employee onboarding process facilitates this objective while accelerating new hires' ramp-up, enabling them to contribute sooner.

88% Of Organizations Don't Effectively Onboard New Hires.

According to Gallup, only 12% of employees strongly agree that their organization excels at onboarding new employees. This indicates that 88% of employees believe their organizations fall short in this area, presenting ample room for improvement. Since a robust onboarding process leads to higher retention and productivity, most organizations have a significant opportunity to enhance their onboarding practices. Conducting employee surveys can help identify areas for improvement.

58% Of Organizations Prioritize Processes And Paperwork In Onboarding

The fact that only 12 percent of employees believe their organization excels at onboarding is not surprising when considering that over half of organizations, as per HCI, focus their employee onboarding efforts on processes and paperwork. Additionally, one-third of organizations describe their onboarding programs as informal, inconsistent, or reactive. The best employee onboarding programs prioritize structure and strategy, emphasizing people rather than paperwork.

Most Organizations Limit Onboarding To The First Week.

HCI highlights that most organizations conclude their onboarding process within the first week, leaving new hires feeling confused, discouraged, and lacking resources. Unsurprisingly, organizations need help with onboarding when they rush through all activities so quickly. New hires must acclimate to their company, culture, and role over a week. The most effective employee onboarding programs extend throughout the first 90 days, and in some cases, even up to a year to provide comprehensive support as new hires ramp up their productivity.

A Negative Onboarding Experience Doubles The Likelihood Of Employees Seeking Other Opportunities

Digitate's research indicates that new hires who have a negative onboarding experience are twice as likely to search for alternative career opportunities in the future. Considering the average cost of $4000 and 24 days spent on hiring a new employee, a negative onboarding experience can double these expenses and time investment. When factoring in vacancy costs, lost productivity, and its impact on morale, losing an employee shortly after hire proves to be far worse than it initially seems.

1 In 5 New Hires Are Unlikely To Recommend Their Employer

As reported by Digitate, one in five new hires is unlikely to recommend their employer to a friend or family member based on their onboarding experience. Employee referrals are highly sought because they lead to faster and more cost-effective hiring, quicker onboarding, and longer retention. Unfortunately, 20 percent of new hires do not feel inclined to recommend their employer to their social connections.

87% Acknowledge The Benefits Of Buddy Programs In Enhancing New Hire Proficiency

According to HCI, 87 percent of organizations that assign an ambassador or buddy program during the onboarding process consider it an effective way to expedite new hire proficiency. Despite its high effectiveness, less than half (47 percent) of organizations incorporate a buddy program into their onboarding process. Implementing a buddy program is relatively easy and cost-free. By pairing a seasoned employee with a new hire, regularly checking in for the first month, and then periodically afterward, the program can aid in acclimation, introduce the new hire to colleagues, help with answering the long-lingering questions, such as why choose healthcare as a career essay, and familiarize them with the office surroundings.

81% Of Organizations View Cross-boarding As Crucial As New Hire Onboarding

HCI's report reveals that 81 percent of organizations believe onboarding internal hires is equally essential as onboarding external hires. However, only 27 percent of organizations effectively onboard employees who are promoted or transitioned into new positions. While internal hires may not require company-specific information, they greatly benefit from social activities that help them become familiar with their new team and the specifics of their role.

The Biggest Challenge In Onboarding Is Inconsistent Application

HCI identifies inconsistent application, competing priorities, the ability to measure ROI, lack of buy-in and manager accountability, the problem of stakeholders and ethics, and insufficient internal resources as the top challenges in employee onboarding. If you are grappling with these challenges in your onboarding program, know you are not alone. Many organizations have overcome similar obstacles, and numerous resources are available to guide you. Implementing an employee onboarding solution can also alleviate these challenges by reducing manual tasks, maximizing resources, and automating reminders to ensure consistent application and manager accountability.

The Average New Hire Onboarding Experience Involves 54 Activities

Reports suggest that new hires have over 50 activities to complete during their onboarding period. On average, new hires are assigned three documents to sign, upload, or acknowledge, along with 41 administrative tasks such as desk setup. They are also expected to achieve ten outcomes, encompassing learning goals related to company culture, market knowledge, and role alignment. This diverse range of activities ensures that new hires fully acclimate and integrate into their new role.

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