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.
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.
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.
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.
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.
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)
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)
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.
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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)
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.
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.
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.
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.
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.
The general consensus is that those are:
Your onboarding program should cover the 5 Cs which include:
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.
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.
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.
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.
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