Onboarding is like a first date — so what are you doing to impress your new hires?
Employee onboarding is the first impression a new hire has as an official member of your company. A shocking number of companies that sink thousands of dollars in recruiting new talent spend very little time or money on employee onboarding once a new hire has signed their contract.
In order to truly understand the importance of employee onboarding, we’ve put together 50 must-know onboarding statistics for HR professionals and explained their impact to your company’s overall health and longevity.
Looking for onboarding statistics regarding a specific area of your business? Use the links below to jump ahead:
There are several factors that play into successful employee onboarding. As an HR professional, your role is to keep things running smoothly. But what are other HR professionals and employees saying about their experience with onboarding?
88% of employees think their employer did a poor job with the onboarding process. (Gallup, 2017)
1 in 5 new hires is unlikely to recommend the employer to a friend or family member after the onboarding process. (Digitate, 2018)
HR managers say the top three biggest challenges they face with onboarding are inconsistencies in application across the organization (44%), competing priorities (39%), and measuring onboarding effectiveness (36%). (HCI, 2016)
87 percent of organizations that assign a mentor or a buddy during the onboarding process say that it's an effective way to speed up new hire proficiency.(HCI, 2016)
The cost of employee turnover due to poor onboarding affects more than your talent pool: it could be causing your company to bleed money. Read more about the financial costs associated with onboarding:
The average employer spends $4,000 and 24 days on a new hire. (Glassdoor, 2018)
The average cost of replacing an employee is between 16% and 20% of that employee’s salary. (Contract Recruiter, 2015)
4 out of 5 companies do not have a specific budget set for employee onboarding. (Allied Workforce, 2012)
Onboarding sets the tone for the rest of the employee experience. A poor onboarding experience can lead to a disengaged workforce and decreased performance. Read more about how onboarding can impact the rest of an employee’s time with your company:
54% of companies with onboarding programs reported higher employee engagement. (SHRM, 2017)
51% of HR employees believe that onboarding is very important for engagement. (G2, 2018)
77% of employees who had a formal onboarding process hit their first performance goals.(Urbanbound, 2018)
66% of HR employees believe that employee engagement has increased over the past year, yet 34% of non-HR employees surveyed feel more engaged than they were 12 months ago. (G2, 2018)
25% of companies admitted that their onboarding program does not include any form of training. (ClearCompany, 2019)
44% of companies have coaching/mentoring programs, which could improve employee/manager relationships. (Allied Workforce, 2012)
Of those who don’t hit their first performance goals, 50% did not have a formal onboarding process. (Urbanbound, 2018)
Onboarding programs have been shown to increase retention by 25% and even improve employee performance by up to 11% (ClearCompany, 2019)
29% of HR employees say that onboarding is the biggest challenge they face when trying to improve employee engagement. (G2, 2018)
Only 58% of companies provide clear job titles and identify expectations for employees. (Allied Workforce, 2012)
32% of the non-HR employees believe that their companies do not invest in their engagement. (G2, 2018)
In the U.S. and U.K., an estimated $37 billion is spent annually to keep unproductive employees who don’t understand their job. (Urbanbound, 2018)
Only 39% of companies establish milestones and set goals for new employees. (Allied Workforce, 2012)
16% of HR employees believe providing onboarding solutions to transition employees into their roles is the greatest factor in improving employee engagement. (G2, 2018)
Don’t let a bad “first date” ruin your relationship with a new employee
Onboarding a new employee can be expensive and time consuming, but the data doesn’t lie. When you put the effort into creating an onboarding experience that prioritizes employee education and success, you’ll see the benefits. Less new hire turnover, increased employee engagement, and overall savings toward your bottom line.
Lauren is a Content Marketing Manager at G2. You can find her work featured on CNBC, Yahoo Finance, and on the G2 Learning Hub. In her free time, Lauren enjoys watching true crime shows and spending time in the Chicago karaoke scene. (she/her/hers)