Onboarding is like a first date — so what are you doing to impress your new hires? are you making a good impression?
Despite the significant investment in recruiting top talent, many companies overlook the crucial stage of onboarding. With accessible onboarding software simplifying the process, there's no excuse for neglecting this vital step.
To grasp the significance of effective onboarding, we've compiled statistics for human resource (HR) professionals, illustrating its impact on your company's success and sustainability.
General onboarding statistics
Effective onboarding is essential for any business looking to retain talent and maximize employee productivity. To underline the significance of investing in onboarding, let's take a look at some general onboarding statistics:
- Great onboarding can make employees stay by 82% and work better by more than 70%.
- The global market for onboarding tools is expected to be worth $1.7 billion by 2026.
- 77% of HR professionals think onboarding will be more important.
- 36% of companies don't have a structured onboarding and recruitment process.
- Only 12% of US workers say their company's onboarding is good.
- 25% of companies spend just one or two days onboarding.
- 10% of employees quit because their onboarding experience wasn't good enough.
- 47% of businesses use the buddy system to help new employees settle in.
- 56% of new hires prefer having a mentor or buddy.
- 77% of employees who had formal onboarding met their first goals.
- 91% of employees who get company culture training feel connected to their workplace.
Employee onboarding process statistics
A smooth onboarding process not only sets the stage for employee success but also enhances employee satisfaction and retention rates.
By investing in a well-structured onboarding program, businesses can significantly reduce turnover costs, boost productivity, and ultimately drive organizational success.
Let's delve into some key statistics that highlight the importance of optimizing the employee onboarding process.
- 55% of businesses don't check if their onboarding works.
- New employees usually have 54 tasks to do when they start.
- Only 43% of workers say their onboarding lasted more than a day.
- Many companies only care about the first week of onboarding.
- 55% of businesses don't measure how well their onboarding works.
- 25% of companies don't include any employee training in their onboarding.
- 92% of HR professionals know about the role of artificial intelligence (AI) and marketing automation in hiring and onboarding.
- Half of HR professionals think AI can make the onboarding experience better.
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36% of HR executives mentioned that the absence of technology stops them from automating and organizing onboarding programs.
Remote onboarding statistics
As businesses continue to adapt to remote work environments, the process of onboarding new employees has undergone significant changes.
Understanding the impact and challenges of remote onboarding is essential for businesses striving to maintain efficient operations and retain top talent.
Let's delve into some key statistics:
- After COVID restrictions, 18.9% of companies started hiring remotely.
- 37.4% of HR professionals say remote onboarding is the biggest challenge when hiring.
- Only 39% of workers felt they got enough support during remote onboarding, while 18% got none.
- Remote employees who had thorough onboarding were 18% happier with their jobs than those who didn't.
- 42% of people say the toughest part of remote onboarding in the future will be evaluating employees.
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Employee onboarding benefits statistics
Effective employee onboarding is not just about welcoming new hires; it's an investment in the future success of your business. But don't just take our word for it. Let the numbers speak for themselves.
Here are some compelling statistics:
- New employees who have a positive onboarding are 18 times more dedicated to their employer.
- 53% of HR executives say good onboarding increases how engaged employees are.
- About 4 out of 5 workers think onboarding programs help them fit in and grasp the company culture.
- Onboarding helps 85% of employees grasp and utilize their benefits completely.
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Employee onboarding challenges statistics
Effective employee onboarding is crucial for businesses to ensure that new hires are smoothly integrated into their roles, contributing to overall productivity and company success.
However, navigating the complexities of onboarding can be daunting, with various challenges often arising along the way. Understanding these challenges is essential for companies to optimize their onboarding processes and provide a seamless employee experience.
Below are some key statistics highlighting the common hurdles faced in employee onboarding:
- Just 12% of workers believe their company has a good onboarding process.
- 47% of businesses face difficulties in onboarding due to problems with accessing infrastructure.
- Two out of five HR managers spend at least three hours gathering onboarding details manually.
- About 26.5% of HR professionals mention a lack of onboarding technology in their programs.
- More than a quarter of employees say they didn't have important information about their roles before accepting a job.
- 31% of employees in the US haven't received any formal on-the-job training.
- If the onboarding process isn't efficient, there's a 22% employee turnover within the first 45 days of employment.
Employee retention statistics
In today's competitive landscape, retaining top talent is paramount for businesses striving to thrive.
These stats provide a snapshot of the current state of employee retention, highlighting areas where improvement is needed and offering actionable takeaways for enhancing retention efforts.
Let's delve into the numbers:
- Companies with a top-notch onboarding process see a 52% rise in retaining new hires.
- 69% of workers say they're likely to stay with a company if they have a fantastic onboarding experience.
- 58% of new employees stick with a company for three years if they went through a structured onboarding program.
Financial impact of employee onboarding statistics
Investing in an effective onboarding process is not just about welcoming new hires—it's a strategic move that can significantly impact your bottom line. Let's delve into the compelling statistics that underscore the financial importance of a robust onboarding strategy:
- 35% of companies don't spend any money on onboarding new hires.
- Training an employee costs around $1,678 on average.
- Organizations typically invest $1,280 per employee on workplace learning.
- The loss of productivity because of new hires learning the ropes can result in a cost of 1% to 2.5% of total business revenue.
- Organizations prioritize investing in talent acquisition and employee experience twice as often as they do in onboarding processes.
Impact of onboarding process on employee engagement
Beyond just orientation, effective onboarding can significantly influence employee engagement, productivity, and ultimately, organizational success. Let's delve into some compelling statistics that underscore the importance of investing in a robust onboarding experience.
- 60% of businesses don't establish goals or milestones for new hires.
- About 90% of employees believe that top-notch training boosts workplace engagement.
- Companies with onboarding programs reported increased employee engagement, according to 54% of them.
- 51% of HR professionals think onboarding is extremely important for engagement.
- 16% of HR professionals believe that offering onboarding solutions to help employees transition into their roles is the most significant factor in enhancing employee engagement.
Sources:
Don't let a bad start ruin your relationship with a new employee
Investing in effective onboarding may seem costly and time-intensive, but the statistics speak for themselves.
By dedicating resources to crafting an onboarding process that emphasizes employee education and achievement, you'll reap numerous rewards.
Expect reduced turnover among new hires, heightened employee engagement, and significant savings contributing to your bottom line.
Master the challenge of attracting top-tier candidates to your company. Learn more about recruitment marketing to become a true expert.
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Lauren Pope
Lauren Pope is a former content marketer at G2. You can find her work featured on CNBC, Yahoo! Finance, the G2 Learning Hub, and other sites. In her free time, Lauren enjoys watching true crime shows and singing karaoke. (she/her/hers)