Recruiting new employees doesn’t stop at finding the perfect match for a position in your company. What follows is a process of onboarding that ensures that the new hire integrates into the organization and its culture; introduces them to their day-to-day role as well as the expectations they should meet. A good onboarding program results in a higher retention rate, higher engagement in the workplace, better productivity, and lower staff turnover. So, here are the most important onboarding statistics that you and your organization should be aware of if you want to improve your onboarding process.
Onboarding Statistics (Editor’s Choice)
- Good onboarding improves the retention rate by 82%. (B2B Assets)
- By 2025, the value of the onboarding software market is expected to reach $1.35 billion. (Apps Run the World)
- Only 12% of US employees consider onboarding effective. (Gallup)
- Video is the preferred onboarding content of 91% of customers. (Wyzowl)
- Over 70% of employers have some part of the hiring method which is done remotely. (CareerPlug)
- Over 90% of new hires’ decision to stay is greatly influenced by onboarding. (Sapling HR)
General Onboarding Stats
1. Employee retention is improved by 82% with a solid onboarding process.
Organizations that have poor onboarding policies fail to gain the trust of new employees and they lose them within a year. However, those companies which boast good onboarding processes boost productivity and retention by 70% and 82%, respectively.
2. The average onboarding time should take at least three months.
Although companies have different policies, HR specialists tend to agree that the usual time for onboarding should not be less than three months. Onboarding and retention statistics meanwhile suggest that companies will increase employee retention if they extend the onboarding period to a year.
3. 66% of HR managers spend no more than a month on onboarding.
The importance of onboarding has become more evident in recent times. However, two-thirds of managers say that onboarding takes up to a month and around 50% spend even less time on onboarding — up to a week.
4. 93% of new hires’ decision to stay is greatly influenced by onboarding.
Onboarding and retention are intertwined as confirmed by over 90% of recruits who highlight the importance of the onboarding process for their decision to either stay or leave the company. Onboarding stats reveal that the process not only helps employees to adapt to the new workplace, but it also sets them up for success.
5. Over a fifth of employee turnover takes place within the first 45 days.
It’s not true that employees need a year to show that they’re feeling unappreciated, bored, or fed up. 22% of the turnover of new hires happens in the first month and a half which often coincides with the onboarding process. So, a positive onboarding experience is essential for employee retention.
(The Wynhurst Group)
6. The onboarding software market is expected to hit $1.35 billion by 2025.
In 2020, the onboarding software market was estimated at $1.2 billion. The market is projected to grow at a CAGR of 2.5%, from 2020 to 2025, reaching $1.35 billion by the end of that period.
(Apps Run the World)
Bad Onboarding Statistics
7. Only 12% of US employees are satisfied with the onboarding process.
A small number of workers in the US believe in the effectiveness of onboarding offered by their employer. That leaves nearly 90% of employees dissatisfied with the fulfillment of promises, the preparation, and the feeling of belonging that should be provided by the onboarding process of the hiring company.
8. 20% of employees claim that the onboarding process was unsatisfactory or it wasn’t provided at all.
Employee onboarding statistics show that one in five workers were either disappointed by onboarding or never underwent such a process. The newly created situation with the pandemic makes onboarding necessary because remote workers need to create relationships and integrate with the company
9. Just 29% of new employees are confident in the preparation for their jobs.
New hires expect that the onboarding process will provide answers and learning experiences to help them excel at their jobs. But, only around 30% of new employees believe that onboarding has offered proper training and support to perform their jobs.
10. Over 30% of executives have experienced poor onboarding.
Bad onboarding statistics reveal that 32% of higher-level employees weren’t satisfied with the onboarding policies. Also, onboarding processes for executive roles are more developed because these positions influence a large part of the organizations and the cost of unsuccessful executive managers is high.
11. Nearly 30% of recruits quit their job in the first three months.
If you keep new employees busy and maintain their enthusiasm, you’ll keep them from leaving the company which usually happens in the first three months for just under a third of them. Over 40% of those who quit do it because their daily obligations fail their expectations.
12. New users aren’t satisfied with the companies’ onboarding over 90% of the time.
Customer onboarding statistics show that out of the new customers and users that have purchased from a company, 86% claim they would buy again if the company focuses more on onboarding content. More than 90% of buyers think that companies should do more regarding onboarding new users or customers.
Effective Onboarding Statistics
13. Seven out of 10 employees who are satisfied with the onboarding are also satisfied with their jobs.
If companies want exceptionally productive employees, they need to provide exceptional onboarding. Workers who had great onboarding claim they love their jobs and they are 2.6 times more likely to like their workplace and stay.
14. Employees who had successful onboarding are 18 times more likely to feel committed to their jobs.
Effective onboarding ensures that employees form relations in the company at a faster rate which sets the company on a course of long-term success. So, companies have to make sure that the onboarding process is efficient if they want highly committed workers, as evidenced by effective onboarding statistics.
15. 45% of new hires who experience structured onboarding trust the company more.
Automation creates a productive environment for new employees. It synchronizes all departments in their contribution to the onboarding process. Also, in this way, new recruits know what to expect and when to expect it, which is quite valuable for them.
16. Onboarding statistics confirm that 58% of employees are likely to stay more than three years with a structured onboarding program.
It is very smart for companies to invest in a structured onboarding process. The onboarding importance is evident as nearly 60% of new hires who have undergone a good onboarding process decide to stay more than three years in the companies.
17. Effective onboarding improves employee engagement.
One of the things that contribute to employee engagement is the process of onboarding. When new hires have a sense of belonging and integrate into the company’s culture they are bound for success, as evidenced by employee engagement statistics.
18. 92% of CFOs think that high-quality onboarding has a positive influence on unwanted turnover.
It’s not wise to underestimate the importance of onboarding statistics, especially high percentages like the one of CFOs who believe that solid onboarding can lower the turnover rate. Still, just 27% report their organization boosting onboarding to keep new hires.
19. 90% of employees with a mentor are happy with their job.
Research suggests that mentorship during onboarding can be quite effective. Appointing someone from the department of the new employee to help them acclimate and get used to the new workplace has done wonders. 91% of new hires with a mentor are satisfied and almost 60% are very satisfied with their job.
Other Important Onboarding Statistics
20. New employees have a 25% productivity in the first month.
Employee productivity stats and facts unveil that new hires reach their full potential at the end of their first year. The productivity of new employees stands at 25% in the first 30 days and then it grows to 50% after two months before reaching 75% in the third month.
21. Workday is the top onboarding software vendor.
The top onboarding software vendors accounted for around half of the global onboarding software market worldwide in 2020. That same year, Workday had a 7.1% market share, followed closely by SAP, Pendo, and WalkMe.
(Apps Run the World)
22. The majority of people choose video as the best onboarding content.
Customer onboarding stats confirm that 91% of the people who buy products and 74% of those who buy apps use video to understand its use better. Almost all consumers believe in the effectiveness of the video as a welcoming and educational onboarding tool.
23. The UK economy loses £340 billion ($408 billion) because of disengaged employees every year.
Engagement of employees should be nurtured from the very beginning of the hiring process or the onboarding which can be a serious contributor in that area. Onboarding statistics for the UK show that disengaged employees cause financial losses because of their recruitment and training, also their absenteeism, low productivity, and lack of creativity.
24. 71% of organizations use some kind of remote hiring method.
According to remote work statistics, there is a drop in the number of businesses that carry out exclusively in-person hiring. And the number of businesses that do only virtual hiring has increased since the pandemic.
How effective is onboarding?
Employee onboarding statistics show that workers who have undergone a good onboarding process are 2.6 as likely to like their job and by implication, are better prepared to outperform and feel the job has met their expectations.
How long does it take to onboard a new employee?
Although the onboarding period may vary, it is a largely accepted answer that usual onboarding takes around 90 days. Some HR statistics, however, suggest that onboarding should last a year to help new hires feel more comfortable in their workplace, and become more productive. Still, despite the importance of onboarding, statistics show that two-thirds of HR managers spend up to a month onboarding new workers.
What are the 4 phases of onboarding?
The general consensus is that those are:
- Orientation — introducing new employees to the organization and the team members;
- Role training — presenting information about their daily obligations;
- Transition — transitioning to their permanent role;
- Ongoing development — creating plans for career and personal growth.
What are the 5 Cs of onboarding?
Your onboarding program should cover the 5 Cs which include:
- Compliance — covers regulations and rules;
- Clarification — includes expectations for job performance;
- Culture — the understanding and accepting an organization’s culture;
- Connection — related to workplace relationships and communication channels;
- Check back — checking in with new employees regularly throughout the first year.
How long does it take for a new employee to be productive?
Onboarding statistics show that it usually takes one to two years for a new hire to become fully productive. There are people who believe that new employees need some training and a little time to be effective in their new job. However, recruits with or without experience need a lot of time to get acclimated and understand their tasks. So, reaching high productivity for new employees takes longer than most managers believe, as further confirmed by performance management statistics.
What’s the difference between induction and onboarding?
The terms induction, orientation, and onboarding are considered synonyms, but employee onboarding stats point to some differences. Induction or orientation refers to the practical and technical integration and introduction of the new hire to the team and the organization. Onboarding meanwhile encompasses the new employee’s introduction to the business and their preparation to perform the job they’re hired to do.
What is the main difference between onboarding and training?
Training is about the technical part of the job including explanations about procedures, technology, equipment, or how to complete tasks and do the job, while onboarding refers to the bigger picture, and as such, includes training. Onboarding stats show that it covers integration within the organization, its culture, and forming relationships with team members and managers.
Is onboarding paid?
The general understanding is that it should be paid. Employers should provide compensation for the time that new employees spend under their direction and control including regular orientation, paperwork process, and training before starting actual work.
Does onboarding mean you are hired?
If you look at the definition of the term onboarding, it is only logical to assume that onboarding starts once you’ve been hired. Onboarding statistics further confirm that this process is a very important step for new employees which can lead them to success or failure.
Sources: B2B Assets, Bamboo HR, Sapling HR, The Wynhurst Group, Apps Run the World, Gallup, SHRM, JobVite, Forbes, Wyzowl, Bamboo HR, Toolbox, Sprout Social, Forbes, CNBC, Sampling HR, Perkbox, CareerPlug, SaplingHR, RoundTable Learning, Paycor, RecruitShop, HowToo, HR Resolutions, Bernie Portal