50 Onboarding Statistics Every HR Professional Needs to Know

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:

Onboarding statistics

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)
  • 32% of global executives rate the onboarding they experienced as poor. (Harvard Business Review, 2008)
  • Only 37% of companies extend their onboarding programs beyond the first month. (Clickboarding, 2016)
  • 22% of companies have no formal onboarding program. (Harvard Business Review, 2015)
  • Half of all senior-level outside hires fail within the first 18 months on the job. (Urbanbound, 2018)
  • 40% of new hires say getting a response from HR about their question takes too long. (Digitate, 2018)
  • 10% of companies have not updated their employee onboarding process in the last three years. (Urbanbound, 2018)
Stats about employee onboarding

 

  • Management participates in onboarding programs at just 35 percent of companies. (Allied Workforce, 2012)
  • 58% of organizations say their onboarding program is focused on processes and paperwork. (HCI, 2016)
  • The average new hire has 54 activities to complete during their onboarding experience.(Sapling, 2019)
  • 72% of employees say one-on-one time with their direct manager is the most important part of any pre-boarding or onboarding process. (Enboarder, 2019)
  • 33% of high-performance onboarding programs build social networking into new hire onboarding. (Glassdoor, 2015)
  • Best-in-class companies are 53% more likely than others to undertake pre-boarding, by starting the employee onboarding process before a new hire’s first day. (Enboarder, 2019)
  • 38% of companies have an online onboarding platform and larger companies are more likely to utilize technology solutions. (HCI, 2016)

Ready to find an onboarding program that does the heavy lifting for you? Discover which onboarding software can help you get the job done.

< ![endif]Find the best Onboarding Software on the market. Explore Now, Free →

Employee retention statistics

Onboarding plays a large role in the retention of employees. Without a comprehensive onboarding process, your organization could be at risk of losing new employees before they even get settled in:

  • Organizations with a strong onboarding process improve new hire retention by 82% and productivity by over 70% (Glassdoor, 2015)
  • 47% of companies say their top metric for onboarding success is measuring the one-year turnover rate of new hires. (HCI, 2016)
  • A staggering 20% of new hires leave a job for a new opportunity within the first 45 days on the job. (HCI, 2016)
Employee turnover stats

 

  • People who had a negative new hire onboarding experience are twice as likely to seek a different opportunity in the immediate future. (Digitate, 2018)
  • 69% of employees are more likely to stay with a company for three years if they experienced great onboarding. (SHRM, 2017)
  • 28% of new hires leave just six months into a new job. (SHRM, 2017)
  • About 3 million Americans voluntarily quit their job every month. (U.S. Bureau of Labor Statistics, 2019)
  • 87% of HR leaders consider improved retention a critical or high priority for the next five years. (Kronos, 2017)
  • More than 70% of high-retention-risk employees say they have to leave their organization in order to advance their careers. (Willis Towers Watson, 2015)
  • Companies that support remote work have 25% lower employee turnover than companies that don’t. (OwlLabs, 2018)
  • 65% of tech employees are confident they can find a better position that pays more. (Dice, 2014)
  • 93% of millennials say they left their employer the last time they changed roles. (Gallup, 2016)
  • 84% of employees would consider leaving their current jobs if offered another role with a company that has an excellent corporate reputation. (Enboarder, 2019)

Financial impact of onboarding statistics

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)
employee turnover cost

 

Employee engagement and performance statistics

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)
value of onboarding

 

  • 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.

< ![endif]Get my Onboarding Statistics roundup  Download Now →


Source: 50 Onboarding Statistics Every HR Professional Needs to Know

Close Menu
%d bloggers like this: