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A great onboarding process can make a major difference in retention. Employee onboarding can make or break an employee’s career at a company, setting them up for success or leaving a new hire unsure of how to navigate their new role. Here are 120+ onboarding statistics that show how valuable this process can be for a company.
General Employee Onboarding Statistics
- Only 37% of businesses ensure that their onboarding process is longer than a month. (Aberdeen, 2018)
- 58% of organizations believe their onboarding programs mainly focus on processes and paperwork. (Sapling HR, 2021)
- The buddy program is used by 47% of businesses to onboard new workers. (Sapling HR, 2021)
- 93% of employers believe a good onboarding experience is critical in influencing a new employee’s decision whether to stay with the company. (CareerBuilder, 2018).
- According to HR experts, new employees must complete an average of 54 activities for onboarding purposes. A new hire is typically assigned 41 administrative tasks and three documents to complete. In addition, they must meet 10 outcomes. (Sapling HR, 2021)
- 56% of new hires prefer having a mentor or buddy to assist them. (ClickBoarding, 2020)
- It takes new employees 8-12 months to become as efficient as their regular coworkers. (ClickBoarding, 2020)
- More than one-third (37%) of dynamic businesses offer at least a month-long onboarding program. (ClickBoarding, 2020)
- 29% of employees say their company could help properly onboard them, which they believe is critical in assisting them to be better prepared to begin their new jobs. (CareerBuilder, 2019)
- 77% of employees who went through a formal onboarding process were able to meet their first performance goals. ( eLearning Industry, 2019)
- 47% of companies are unsure how to assess the success or failure of their current employee onboarding initiatives. (SHRM)
- 58% of businesses say their onboarding program is centered on processes and paperwork. (Sapling HR, 2021)
- Most organizations only focus on the first week of onboarding. (Sapling HR, 2021)
- 81% of organizations believe cross-boarding is just as important as new hire onboarding. (Clickboarding, 2021)
Employee Onboarding & Retention Statistics
- The first 45 days of employment account for up to 20% of worker turnover. (SHRM)
- Interactive employees who engage in a structured onboarding program are 69% more likely to stay for three years. (ClickBoarding, 2020)
- 78% of employees indicated they would stay with their present company longer if they saw a career path during the onboarding period. (Mercer, 2018)
- Retention rates for businesses that provide formal onboarding training are estimated to be 50%. (Harvard Business Review, 2018)
- A bad onboarding experience increases the likelihood of an employee looking for another job. (Businessnewsdaily, 2020)
- A poor onboarding experience doubles the likelihood of the employee finding another position. (Sapling HR, 2021)
- Poor onboarding has a negative impact on employees, with approximately 10% of employees resigning from a company due to their insufficient onboarding experience. (Business News Daily, 2020)
- 25% of a company’s new hires would leave within a year if the onboarding experience was poor. (SHRM, 2018)
- People who had a lousy onboarding experience were twice as likely to leave the firm. (Clickboarding, 2020)
- Companies experience a 50% failure rate in retaining hires if the onboarding is bad. (Forbes, 2018)
- There is a 22% staff turnover within the first 45 days of employment if the onboarding process is inefficient. (Clickboarding, 2021)
- In 2017, 28% of recruits departed their jobs after six months. (SHRM, 2017)
- 61% of employers expect new hires to stay with them for at least two years. (PWC, 2021)
- In 2017, the industries with the most significant turnover rates were software (22%), semiconductor (15%), and healthcare (17%). (AON, 2017)
- 37% of employers cite a lack of work-life balance as one of the primary reasons employees leave their company. This means that each new hire should receive proper onboarding to ensure that everyone follows healthy work practices. (The Manifest, 2020)
Employee Onboarding Issues
- 88% of organizations don’t onboard well. (Sapling HR, 2021)
- 32% of global executives reported a bad onboarding program. (SHRM)
- 49% of individuals who failed to reach their first performance milestone had no official onboarding instruction. (SHRM)
- 76% of HR executives thought that their organizations’ employee onboarding practices were underutilized. (Businesswire, 2018)
- 36% of HR professionals blamed their inability to automate and organize onboarding programs on a lack of technology. (Businesswire, 2018)
- Following onboarding, 20% of new hires do not recommend a company to a friend or relative. (Digitate, 2018)
- 40% of new hires also report that HR responds to job-related inquiries very late. (Digitate, 2018)
- Only 27% of organizations report that they effectively onboard employees. (HCI.org, 2019)
- Only 12% of employees strongly feel that their company does an excellent job of onboarding. (Gallup, 2018)
- 50% of those who did not meet their first performance goals did not have a formal onboarding process. (SHRM)
- Despite known flaws, 10% of companies have not upgraded their employee onboarding process in recent years. (Finances Online, 2020-2021)
- 55% of businesses report that they do not measure the effectiveness of onboarding programs. (Finances Online, 2020-2021)
- Roughly one-third of global executives reported that the quality of their onboarding was below par. (ClickBoarding, 2021)
- Automating onboarding tasks resulted in a 16% increase in retention rates for new hires. (eLearning, 2018)
- Similarly, automating onboarding tasks resulted in an 18% improvement in initial performance. (eLearning, 2018)
- For more than a week after they start, 43% are without essential job equipment. (Talentech, 2021)
- If almost half of a company’s recruits do not have the fundamental tools, they need to accomplish their jobs, it is predicted that first-week productivity would plummet. Moreover, it’s going to be considerably worse if the employee works from home. (BBS, 2020)
- When recruits have a bad onboarding experience, they are twice as likely to search for another job. (Sapling HR, 2021)
- One out of every five recruits is unlikely to recommend an employer. (Harvard Business Review, 2019)
- Only 12% of employees believe their companies have good onboarding programs for new hires. (INC, 2019)
COVID-19 & Employee Onboarding Statistics
- Looking ahead, 21.6% of managers said that one of their top three concerns would be onboarding new employees once the pandemic is over. (Workable, 2020)
- In a post-COVID-19 environment, managers anticipate that some of their most complex challenges will be onboarding, candidate engagement, and appraisal. (Workable, 2020)
- One study found that remote hiring, training, and onboarding new hires are employers’ most challenging recruitment challenges amid the global health crisis. (Workable, 2020)
- When forced to hire remotely due to the pandemic, 51.7% of managers say the most difficult challenge was candidate engagement. Others mention new hire onboarding (49.7%) and evaluation (42.4%). (Workable, 2020)
Employee Onboarding Success Statistics
- A strong onboarding experience ensures that 69% of workers remain with a firm for three years. (SHRM)
- A regular onboarding procedure experience boosts recruit retention by 50%. (HBR, 2018)
- Businesses that use organized onboarding see a 60% increase in revenue year over year. (Northpass, 2019)
- Giving a mentor or buddy to a recruit throughout the onboarding process enhances the new hire’s efficiency. (Sapling HR, 2021)
- Organizations with formal onboarding training are less likely to lose more than 60% of their entire workforce within four years. (TMF Group, 2018)
- Within a year, 25% of businesses lose up to 60% of their total personnel. However, adopting an onboarding program may boost retention by 25%. (Clear Company, 2020)
- Organizations with an excellent onboarding process increased new hire retention rates by 52%. (Clear Company, 2020)
- Manager satisfaction increases by 20% when employees have formal onboarding training. (SHRM)
- Employees who engage in the most extended onboarding programs (up to a year) achieve full competence 34 times faster than their peers. (Atrivity, 2021)
- A positive employee onboarding experience increases the likelihood of that person remaining by 82%. (Sapling HR, 2021)
- Well-designed onboarding plans can increase new hire performance by 11%. (ClickBoarding, 2020)
- 77% of recruits who reach their first performance milestone received formal onboarding training. (LinkedIn, 2017)
- 53% of HR experts think that employee engagement improves when onboarding is done correctly. (Apollotechnical, 2021)
- 92% of recruits report feeling productive and valued within their first month following cultural and operational onboarding. (Recognation, 2021)
- Employees in organizations with effective onboarding are 33% more engaged than employees in organizations with ineffective onboarding. (BambooHR, 2018)
- A practical onboarding experience can increase new hire quality by 70%. (Glassdoor, 2018)
- When their employees receive formal onboarding training, managers’ satisfaction rises by 20%.(eLearning, 2018)
- A successful onboarding strategy may increase recruit retention by up to 82% while reducing non-starters. (Sapling HR, 2021)
- The best employee onboarding programs extend throughout the first 90 days. They may even extend to one year to ensure new hires are fully supported. (LinkedIn, 2020)
The Employee Onboarding Process
- More than one-third of businesses lack a formal onboarding process. (SHRM, 2015)
- 60% of companies don’t set targets or milestones for recruits. (Harvard Business Review, 2017)
- Just 12% of businesses provide a fantastic onboarding experience. (Gallup, 2019)
- 32% of worldwide executives’ onboarding processes were inadequate. (SHRM)
- 37% of organizations ensure their onboarding processes last longer than a month. (HCI.org, 2019)
- Most businesses only invest seven days of their time in the onboarding process. (Sapling HR, 2021)
- The time-to-productivity ratio is greater for 62% of firms with successful onboarding programs. (SumTotal, 2018)
- According to onboarding solutions data, a good onboarding process boosts recruit productivity by 70%. (Talent LMS, 2021)
- One-on-one time with their direct manager is an essential part of onboarding for 72% of employees. (Enboarder, 2018)
- Companies that do not have a systematic and scientifically based onboarding procedure perform lower in crucial measures such as employee engagement and productivity. As a result, the hourly workforce turnover revealed that 50% departed within the first 120 days. (Linked in, 2020)
- 87% of organizations that assign an ambassador or a buddy during the onboarding process say it is an effective way to speed up new hire proficiency. (HCI.org, 2019)
- An effective onboarding program may improve new employee productivity by more than 70%. (The HR Digest, 2021)
The Cost of Employee Onboarding
- The standard cost of onboarding a new employee is almost $4,000. (Glassdoor, 2020)
- It costs between $3,000 to $18,000 to fill a vacant position due to employee turnover. (Clear Company)
- On average, replacing an employee costs between 16% – 20% of the person’s pay. (Peoplekeep, 2021)
- Only 3% of businesses anticipate that more than one-third of their employees will resign within the next year. (Workable Survey, 2020)
- 53% of HR professionals say an improved onboarding process increases employee engagement. (State of Talent 2017, SilkRoad report)
- The primary goal of onboarding programs is to integrate new employees into the company’s culture (as much as 62%). The next highest step is to complete the compliance requirements (at 57%). (Kronos, 2018)
- Assigning a mentor during the onboarding process is very effective for 87% of businesses. (BambooHR, 2018)
- Employees who have a positive and structured onboarding experience are 18 times more likely to feel strongly committed to their employers. (BambooHR, 2018)
- 88% of employees believe that employers could improve their companies’ onboarding programs. (Gallup, 2018)
- Employers in the U.S. lost $617 billion in 2018 due to employee turnover. (Work Institute, 2019)
- In 2019, the top ten onboarding vendors controlled 58.7% of the total global market. (Apps Rule the World, 2019-2024)
- During 2019, businesses spent an average of $3,000 onboarding each new hire. (LinkedIn, 2019)
- New hires are typically low in productivity, which causes companies to lose between 1% and 2.5% of their revenue. (eLearning, 2018)
- With an effective onboarding program, performance improves by 11%. (Click Boarding, 2020)
- Voluntary turnover will cost organizations more than $630 billion by 2020. (Work Institute, 2020)
- By 2022, the global onboarding market will be worth $793 million. (Apps Rule the World, 2019-2024)
Pre-Boarding Statistics
- World-class organizations are 53% more likely to offer pre-boarding activities. (Enboarder, 2018)
- 64% of recruits have no pre-boarding experience. (Talentech, 2021)
- Companies that don’t provide a pre-boarding experience will miss out on many benefits and will likely see more recruits leave during the first six months of work. (SHRM)
- Companies can’t afford to pre-board when the average cost of recruiting for a newly established post is $3,328 and may rise to more than $200,000 to fill high-level executive roles. (Investopedia, 2021)
Employee Onboarding Resources
- Onboarding lays the groundwork for employees to be satisfied, have a positive experience, and produce high-quality work. (SHRM)
- Good onboarding strategies need significant resource investment. (Smartrecruiters, 2020)
- Ready-made onboarding templates accessible on No Code Platforms can help to accelerate the process. (Quixy.com, 2021)
- No Code Platforms can easily simplify and automate HR processes with capabilities such as new IT request automation, offer letter creation, document verifications, learning and development applications, and job integration. (Quixy.com, 2021)
- Employee engagement is influenced by onboarding. (The HR Digest, 2021)
- Businesses may improve recruit retention and productivity by implementing effective onboarding processes. (Sapling HR, 2021)
Employee Onboarding & Ghosting Statistics
- 65% of companies say they’ve had job candidates accept an offer but then fail to show up for their first onboarding day on the job. (Indeed, 2019)
- Job seekers ghost at various phases of the recruiting process: 50% have missed a scheduled job interview, and 46% have ceased responding to calls and emails from potential employers. 19% accepted a verbal offer and left before signing the papers. (Indeed, 2019)
- 22% of employees failed to show up for their first day of work at least once. (Indeed, 2019)
- 26% of potential workers who ghosted the company say they didn’t feel comfortable informing the employer they had changed their minds. (Indeed, 2019)
- 13% of employees note general communication issues as the primary reason for ghosting the recruiter. (Indeed, 2019)
- 11% of employees simply didn’t get the proper information on what to do, and when to show up; therefore, they disappeared. (Indeed, 2019)
- 94% of job candidates who ghost their employer claim they face little-to-no repercussions. (Indeed, 2019)
On a Final Note
By carefully planning the onboarding process, companies can give new hires the tools, information, and relationships they need to be confident and comfortable enough to do an outstanding performance at work. With great onboarding, a company can utilize a new employee’s talents and enjoy the perks of employee longevity and loyalty.
Written by Shortlister Editorial Team
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