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25 Surprising Employee Onboarding Statistics in 2023

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Onboarding is a key component of new hire induction and orientation. Just as agencies often use recruitment software during the hiring process, organizations also need onboarding processes for new staff. Today, more and more organizations are channeling their efforts into building structured onboarding experiences for their employees. In return, they’re reaping benefits like increased productivity and better employee retention.

Today there are numerous technologies and solutions to help organizations create an active onboarding experience for employees. But what do the employee onboarding statistics say about the process?

1. An effective onboarding process boosts retention of new hires by 82%

In a well-known study for Glassdoor by the Brandon Hall Group, researchers found that a strong onboarding process improved new hire retention by 82%. Additionally, it was found that strong onboarding also improved the productivity of new hires by over 70%. [1]

2. Only 12% of U.S. employees believe the company they work for has a satisfactory onboarding process

Gallup analytics found that only 12% of U.S. employees believe that the company they work for has a good onboarding process. The same group found that nearly one in five employees has had a poor onboarding experience or none at all. [2]

These responses indicate employees aren’t satisfied with their organization’s onboarding process.

Gallup also found that employees who reported “exceptional” onboarding experiences were 2.6 times more likely to be extremely satisfied with their organization. [2]

3. On average, new hires are given 54 onboarding tasks to complete

Onboarding involves filling out forms like surveys and other paperwork, meeting the team, arranging a workstation, and learning how to do many other things such as how to arrange a meeting room booking and access the company’s unified communications platform. According to Sapling, on average, new hires are given 54 onboarding tasks to complete. [3]

The volume of onboarding tasks can be a negative experience for the new hire if they are not organized and easy to follow. Starting a new role is difficult enough as it is, but the added pressure of excessive paperwork and tedious tasks can be overwhelming for new hires.

HR managers must learn how to use onboarding templates and automation to streamline the more mundane tasks and leave room for more important things like team introductions in huddle rooms.

4. 58% of companies admit that they focus on processes and paperwork when onboarding new hires

Every organization has a library of documents and contracts that need to be signed by new hires. In fact, research indicates that 58% of companies admit that they focus on processes and paperwork when onboarding new hires. This process can be made easier through the use of contract lifecycle management software, which aids in the creation, management, and organization of contracts at the various different stages of their development and usage. [3]

This means that during the onboarding process, there’s not a lot of time available for activities like training, team building, and interactions with management.

5. 47% of companies struggle with onboarding employees due to infrastructure access challenges

2022: The Year of Access Report states that 47% of companies struggle with onboarding employees due to infrastructure access challenges. [4]

Paper processes, redundant tasks, and departmental siloing are all factors that can hinder the onboarding process; however, it’s within an organization's IT infrastructure that many obstacles can be removed and further special considerations can be taken into account when onboarding new employees to help ingratiate them within the company.

Image sourced from StrongDM Year of Access Report

The use of onboarding software and infrastructure access tools can help you make sure your organization is onboarding-friendly.

6. 41% of employers think that not having a structured onboarding process is detrimental to their organization

Onboarding can often be a first-day introduction where employees are asked to sign some forms and then get to work. The onboarding process may be as simple as a manager asking, “any questions?”.

A study found that 41% of surveyed employers believe that a lack of structured onboarding harms their company. In addition, 36% of companies don’t have any structured onboarding process at all. [5]

The absence of a plan can be unsettling and discouraging to new hires. A structured onboarding process can help ease newcomers into a role.

7. 2 in 5 HR managers spend at least 3 hours collecting onboarding information manually

A report from CareerBuilder found that two in five HR managers who don’t capture onboarding information electronically spend three hours or more onboarding each new employee. This time is spent manually collecting and processing onboarding information that could be automated. [5]

Many businesses are reluctant to inspect and make changes to their onboarding processes. The most efficient way to expedite onboarding is to eliminate as many of the manual tasks, like paperwork and data entry, as possible.

8. The average cost of training an employee is $1,678

According to the latest data, the average cost to train one employee is $1,678. However, according to The American Society for Training and Development, if companies invest in training employees, they can benefit from a 24% higher profit margin. [6]

So, while it initially costs companies to train each new employee, it will benefit both the company and the employee in the long run.

9. 35% of employees state that excellent training and development make an organization appealing to work for

A study by PWC asked Millennials which things they believed make an organization an attractive employer.

The results saw training and development as the third most popular response, with 35% of respondents claiming it was important. [7]

And another of the more interesting employee onboarding statistics was that 74% of respondents were willing to retrain and learn new skills to remain employable. [8]

10. Organizations with standard onboarding processes experience a 50% increase in productivity

The Society for Human Resources Management (SHRM) found that when organizations have a standard onboarding process, new hires are 50% more productive. [9]

Any increase in new hire productivity means organizations save time and money. And more productive employees are typically happier employees.

11. Only 43% of employees report that they received an onboarding process that lasted longer than a day

A report from OC Tanner found that only 43% of employees reported having an onboarding experience that was longer than a day. [10] In most cases, this is considered less than ideal.

The same report defines a foundational onboarding experience as involving:

  • A note from the leader
  • A card signed by peers
  • A personalized symbolic award to commemorate the employee joining the company
  • Company swag

An ideal onboarding experience includes a foundational onboarding experience plus:

  • Time to socialize with other new hires
  • Catered food
  • Time to thank others for their help and support during onboarding

12. 69% of employees state that they’re more likely to remain with a company if they receive a great onboarding experience

Onboarding and retention are directly related. The onboarding process is your organization’s first chance to draw a new hire over to your side and embrace the company culture. One of the onboarding statistics found by a study states that 69% of employees are more likely to stay with a company for three years if they received a great onboarding experience. [9]

13. Employees who receive effective onboarding feel 18 times more committed to their organization

A study conducted by Bamboo HR found that when an employee feels that they had an effective onboarding experience, they’re 18 times more likely to feel committed to the company they’re working for. [11]

This onboarding statistic highlights the importance of companies providing each new hire with an optimal onboarding experience. Solutions like using the best free video conferencing software can go a long way to improving the onboarding process.

14. If employees leave a company, 37.9% leave within the first year

One of the onboarding statistics found by a Work Institutes report was that 37.9% of employees that leave an organization leave within their first year of employment. Two out of three of these employees decide to leave their organization within six months. [12]

The top reason cited for leaving during the first year was career development. This could be mitigated by employers outlining a career roadmap and training options during the onboarding process. Other top reasons for leaving included specific job characteristics and work-life balance.

15. 83% of employees believe having an onboarding program in place would be useful

Your employees want to be set up for success. This includes having all training take place at the beginning of employment. A recent survey found that 83% of employees believe having an onboarding program would be helpful (if it isn’t in place already). [13]

Organizations should consider onboarding and auditing apps to add to their existing business stack. This will ensure they can build an optimal onboarding experience.

16. 78% of employees feel that an onboarding program leads to a positive attitude toward their employer

A Vlerick-Talmundo survey found many perceived benefits for recipients of company onboarding programs.

A vast majority (78%) of respondents feel that onboarding programs helped give them a positive attitude toward their employers and create a positive candidate experience. And 73% of respondents felt onboarding increased their engagement with their jobs. [13]

17. 26.5% of HR professionals say that onboarding technology is missing from their onboarding program

Establishing a supportive onboarding system can be time consuming. Onboarding programs can also be less successful by employers believing that one-size-fits-all. Each candidate and their job role may require different guidance. Varying amounts of time will also need to be spent on onboarding, depending on the job role.

According to a recent report, 26.5% of HR professionals say that technology is the missing ingredient from their organization’s onboarding program. And 68% of respondents plan on using some form of onboarding technology in the future. [13]

18. 43% of new hires waited more than a week for workstation logistics and tools to be in place

A survey found that 43% of employees were still waiting to get basic workstation logistics and tools in place after more than one week. That means they couldn’t even hope to perform their roles and responsibilities. And 18% of respondents still hadn’t received the necessary work tools even though they had been working for the company for over two months. [13]

Additionally, only 53% of employers know how to monitor and assess the success of their current onboarding processes.

Going through process training and equipment checklists should be a mandatory component of the onboarding process. This will ensure new hires aren’t lagging behind, costing the company time and money. In addition, tool oversights will leave employees frustrated, disengaged, and much more likely to leave.

19. It’s estimated the global onboarding software market will be worth $1.7 billion by 2026

More and more organizations are looking to optimize the onboarding process. They’re looking at onboarding tools to help speed up time to proficiency and improve the overall employee experience.

In 2021, Apps Run the World forecasted that the worldwide onboarding software market will experience a CAGR of 2.5% up to 2026. This will bring the total market value up to $1.7 billion. [14]

That’s good news for organizations everywhere as it means stiff competition among onboarding software providers and more options for onboarding solutions.

20. Employees who have positive experiences in their first 90 days at a company are 10 times more likely to stay

You need to create lasting and positive experiences for every employee, including new hires. In an onboarding studies report, a secret to success was discovered. Give employees an early great experience (during the first 90 days), and they’ll want to stay.

In fact, great experiences led employees to be ten times more likely to stay with a company for a long period compared with those who had poor experiences during their first 90 days. [15]

21. 77% of HR professionals believe that onboarding will become more important

A recent study revealed that over three quarters of HR professionals believe that onboarding processes will become increasingly important, with 77% of respondents believing this to be the case. However, as things currently stand, only 5% of organizations have continuous onboarding processes in place. [13]

With the many benefits that great onboarding processes provide, as well as the desire for employees and HR professionals to have them in place, it's vital that employers take action and implement sufficient onboarding processes.

And as remote work appears to be here to stay, organizations should use labor forecasting to predict how many remote workers they may require in the future and find the right onboarding tools to improve training experiences for remote employees.

22. 94% of employees would stay at a company longer if the company invested in their learning and development

People want help from management and team leaders while performing their job. A LinkedIn Learning Report found that if companies invested in coaching, training, and education opportunities, they’d likely retain 94% of those surveyed. [16]

Onboarding and retention go hand in hand. Invest in the development of your staff, and they’ll reward you with improved productivity, new skills, and longevity.

23. A study showed that only 29% of new hires feel supported and prepared enough to excel

One of the onboarding statistics reported by a Gallup study was that after an onboarding experience, only 29% of those surveyed felt fully supported and prepared to excel in their defined role. [2]

This means that more than two thirds of employees who participate in an onboarding experience feel ill-prepared to do their job. It also indicates doubts as to whether they’ll be supported to perform and grow with the company in the future.

24. When employees receive good benefits training as part of their onboarding, 70.3% say they fully utilize their benefits

Organizations can provide employee benefits and perks as a way to not only attract but retain top talent. Unfortunately, it’s often the case that benefits aren’t used to their full potential because employees are unaware of their existence or how to use them.

A report by Bamboo HR found that employees who are given good benefits onboarding are more than 2.6 times as likely to fully use their benefits when compared to those with bad benefits training. [11]

When employees can fully enjoy the benefits provided, they’re more likely to feel appreciated and compensated for their performance.

25. 37.4% of HR professionals find remote onboarding to be the main challenge when filling a job position

There are many benefits of remote and hybrid workforces. And projections show that remote work is here to stay and may grow in popularity. A recent survey found that 37.4% of HR professionals indicated onboarding was the number one concern regarding filling a job position with remote employees. [17]

Get on board

Employee onboarding statistics indicate that remote hires are moving to the forefront. Even if your organization doesn’t hire remote staff, give your current onboarding practices a cold, hard look—get started with an IT onboarding checklist.

Effective onboarding is a major component of the employee-employer relationship. Use the right tools to simplify onboarding and start building an optimal onboarding and retention program!


References

  1. The True Cost of a Bad Hire
  2. 8 Practical Tips for Leaders for a Better Onboarding Process
  3. Sapling’s 5 Employee Onboarding Statistics You Must Know in 2019
  4. 2022: The Year of Access Report
  5. Thirty-Six Percent of Employers Lack a Structured Onboarding Process for New Employees, According to New CareerBuilder Survey
  6. Employee Training Statistics: Cost of Progress in 2022
  7. Millennials at Work Reshaping the Workplace
  8. Workforce of the Future - The competing forces shaping 2030
  9. Don’t Underestimate the Importance of Good Onboarding
  10. 2023 Global Culture Report
  11. The Definitive Guide to Onboarding
  12. 2020 Retention Report
  13. Expectations vs Reality of Onboarding
  14. Top 10 Onboarding Software Vendors, Market Size and Market Forecast 2021-2026
  15. Onboarding Studies
  16. 2019 Workplace Learning Report
  17. The New World of Work

About the Author

, Director of Growth Content, has over 10 years of experience in content writing and strategy. Currently, she is responsible for leading branded and editorial content strategies, partnering with SEO and Ops teams to build and nurture content. Grace Lau also published articles for domains such as Agency Vista and IoT For All.

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