29+ Startling Employee Onboarding Statistics to Know in 2020

Though often overlooked, onboarding training touches almost every aspect of a business. That’s true especially now that the rate of employment is at an all-time low

Onboarding statistics reveal that a good onboarding experience gives you a chance to work with an employee that is both committed and engaged with the company. 

A bad or poor onboarding experience, on the other hand, will only promote disengagement in the workplace. This will subsequently lead to increased staff turnover, increased hiring expenses, a reduction in productivity, wearing out of your active workers, and a decline in total revenue. 

Hence, we have taken the time to fish out the most significant employee onboarding statistics to help businesses reduce the risk:

Eye-Opening Onboarding Statistics for 2020

Check out some of our exciting stats about employee onboarding that is sure to blow your mind away.

  • The average new hire is expected to complete 54 activities during their onboarding process.
  • 58% of organizations say that their onboarding program is focused on processes and paperwork.
  • A negative onboarding experience doubles the chances of an employee to seek another opportunity.
  • A great onboarding experience ensures 69% of employees stick with a company for three years.
  • A standard onboarding process experience increases new hire retention by 50%.
  • A poor onboarding program was reported by 32% of global executives.
  • Only 37% of companies ensure their onboarding programs run for more than a month.

If the employee onboarding stats mentioned above catch your attention, read on to discover more!

General Onboarding Statistics

Check out some of our more general onboarding stats that will leave you stunned.

1. According to statistics for onboarding employees, the average new hire is expected to complete 54 activities during their onboarding process.

(Source: Sapling HR)

These activities help to ensure that a new employee is fully integrated and understands the rudiments and ethics of the organization. They are mostly paperwork, learning goals, and a lot of administrative tasks.

2. Customer service onboarding statistics reveal that organizations with structured onboarding saw a 60% year-over-year improvement in revenue.

(Source: Northpass)

They also witnessed a 63% improvement in year-over-year customer satisfaction.

An excellent onboarding experience breeds employees that are not only productive in their given task but also committed to the growth of an organization. According to customer onboarding statistics, if there are events that can help a company grow, then employees with the best onboarding experiences are best placed to identify and implement them.

3. New employees with good onboarding experience are 18X more committed to their employer.

(Source: Bamboo HR)

Onboarding programs are designed to not only educate, but also to imbibe the company culture into a new hire, whilst also keeping them engaged. That way, they understand their role in the organization better, which also gives them a sense of belonging and directly impacts their loyalty. Considering that disengaged employees in the US cost their employers $450 to $500 billion each year, it’s no wonder such programs are that important. 

4. Onboarding statistics for 2019 reveal that a negative onboarding experience doubles the chances of an employee to seek another opportunity.

(Source: Lear G2)

A poor onboarding experience breeds disengagement and disloyalty in the workplace. This will inadvertently lead to such an employee seeking for job opportunities elsewhere.

5. According to company onboarding statistics, 58% of organizations say that their onboarding program is focused on processes and paperwork.

(Source: Sapling HR)

Paperworks, administrative tasks, and physical training are all part of onboarding programs, even though most organizations prefer to carry out their onboarding processes as paperwork. However, over time, experts have come to realize that the best employee onboarding programs are both structured and strategic, rather than administrative. Also, they should have a focus on people and physical training, not paperwork. And since there are tools like document management software and such feature-rich HR software it’s surprising why companies still focus mostly on paperwork. 

6. 47%  of organizations are using the Buddy program to onboard new employees.

(Source: Sapling HR)

Despite its efficiency and easy to implement style, less than half of organizations are actively using this method to onboard new employees.

7. Onboarding stats reveal that assigning a mentor or buddy to a new hire during an onboarding process increases the efficiency of the new hire.

(Source: Sapling HR)

A whopping 87% of organizations that did assign a mentor to a new employee during the onboarding process did agree to this stat. This follows as a result of the increased proficiency from new employees under the Buddy program.

Onboarding and Retention Statistics

Onboarding has a direct impact on employee retention and staff turnover over a long period. Check out the following onboarding retention stats below to understand how onboarding directly impacts retention rates of organizations.

8. According to automating onboarding tasks statistics, automating onboarding tasks can improve retention rates even further.

(Source: HR Technologist)

Retention rates for organizations with a standard onboarding training are pegged at 50%. However, automating the many processes involved in onboarding a new hire will reduce the time spent on the process. The resulting extra time can then be put to better use such as improving the cultural and social elements of onboarding. This, in its own way, can result in higher employee retention rates.

9. Organizations with a formal onboarding training are less likely to lose more than 60% of their entire workforce within four years.

(Source: TMF Group)

Onboarding programs are like a learning curve for new employees, that takes them from a state of unknown to becoming a dependable asset for a company. As long as these learning processes are in place, and employees feel that they are learning, growing, and being appreciated, they will most likely remain in their current place of work.

10. According to onboarding experience statistics, as much as 20% of staff turnover occurs within the first 45 days of employment.

(Source: Urban Bound)

Do you see how important it is for organizations to nurture their new employees for a more extended period? A good onboarding experience eases the doubts, fears, concerns, and uncertainties of new employees. 

11. 25% of companies lose up to 60% of their entire workforce within a year.

(Source: Enboarder)

Generally, we have more disengaged workers than engaged ones. This can be attributed to a lack of implementation of onboarding training for new hires. Employees flourish where they are comfortable, appreciated, and have a good relationship with their colleagues. A quality onboarding experience can bring about most of the factors mentioned above. A poor onboarding experience, however, can cause a dramatic staff turnover for some companies.

12. According to employee onboarding statistics for 2020, implementing an onboarding program in an organization can increase retention rate by 25%.

(Source: Clear company)

The onboarding process duration ranges from a week to several months across various organizations. Regardless of the time frame employed, the retention rate is sure to improve — however, the longer, the better. Longer onboarding processes allows your new employee to fully integrate into their role, while also assimilating the rules and ethics of the organization.

13. According to onboarding and retention statistics, organizations that have an excellent onboarding process experience an increased 52% retention rate of new hires.

(Source: Clear company)

When there is a standard onboarding training to enhance the experiences of new hires, an organization can improve its retention rate of new hires by more than half. 

Onboarding Success Statistics

Onboarding has an impact on productivity, retention, engagement, and a few other vital factors. Read on to discover some eye-opening onboarding success statistics.

14. According to onboarding success statistics, manager satisfaction is increased by 20% when their employees have standard onboarding training.

(Source: Urban Bound)

If you were a manager, wouldn’t it make you happy to know your employees are more than capable of carrying out their duties efficiently with or without supervision? Well, that is actually what proper onboarding training can help you achieve. Research has shown that managers who work with employees that have had a standard onboarding training are more satisfied.

15. Employees who participate in the most extended onboarding programs (up to a year) attain full proficiency 34 times faster than their counterparts.

(Source: Urban Bound)

When it comes to onboarding, the longer, the better. This is because a longer onboarding time allows for proper but slow integration of a new hire. That way, they can fully grasp the ins and outs of their role in the organization. 

In addition, they are able to thoroughly blend in with the company’s culture to enable them to hit the ground running without any hitches once the onboarding process is over.

16. According to employee onboarding statistics, a great onboarding experience ensures 69% of employees stick with a company for three years.

(Source: SHRM)

A proper onboarding experience takes close to a year, and new hires who stay that long are more loyal and committed to an organization. Research has shown overtime that a higher percentage of these new employees remain at least three years with their organizations before thinking about changing jobs.

17. Onboarding and retention statistics reveal that a great employee onboarding experience can improve the possibility of that employee staying by about 82%.

(Source: Sapling HR)

When you provide employees with a satisfying onboarding experience, your chances of losing them within a short period becomes slim. This is because onboarding reduces to the barest minimum of all forms of uneasiness and challenges. This may cause a new employee to quit if they were to be thrown into the work desk from their first day of resumption.

Poor Onboarding Statistics

As crucial as onboarding may seem from the previously mentioned stats, you will be surprised to find that over one-third of companies lack a structured onboarding process. Read on to discover some poor onboarding employee statistics that we have dug out for you:

18. 60% of companies are reportedly not setting any goals or milestones for new hires.

(Source: Urban Bound)

One of the core strategies of onboarding is to set achievable goals for new hires. When these goals are achieved, they provide a sense of satisfaction and a less obscured view of the said task. These sets of functions are usually arranged in a simple but detailed manner for ease of understanding and the steady growth of the new employee. 

However, more than half of companies out there are reportedly not doing it, and are therefore not setting clear goals or milestones for new hires to achieve.

19. A whopping 35% of companies spend zero dollars on onboarding new hires.

(Source: Enboarder)

Companies are ready to spend thousands of dollars hiring new employees.

But.

They are unwilling to invest in onboarding experiences that can enhance employee retention, boost productivity, and save the cost of operation while also increasing revenue.

It simply makes no sense.

20. Only 12% of organizations have a great onboarding experience, as reported by employee onboarding statistics.

(Source: Gallup)

As crucial as onboarding has become to businesses today, you will be surprised to find that only a few organizations have taken the necessary steps to ensure it. Yet, thousands of dollars go into recruiting new hires daily. 

21. Onboarding solutions statistics reveal that 32% of global executives onboarding processes were poor.

(Source: Urban Bound)

For organizations that are using one form of onboarding or the other, reports show that almost ⅓ of them are reportedly poor, thereby leading to poor onboarding experiences.

22. According to statistics on employee onboarding, only 37% of companies ensure their onboarding programs run for more than a month. 

(Source: Learn G2)

According to statistics on onboarding, a week is never enough to bring a new employee up to speed about the culture, work pattern, ethics, and history of the organization. Instead of winning their trust and commitment, a one-week onboarding experience is likely to leave your new hires confused. Onboarding programs are better suited from upwards of 3 months to a year.

Onboarding Engagement and Productivity Statistics

There is a direct correlation between onboarding, productivity, and engagement. A good onboarding experience breeds higher productivity and increased engagement. A poor onboarding experience, on the other hand, will most likely leave your new employee disengaged, and less productive. 

23. 62% of companies with effective onboarding programs have a higher time-to-productivity ratio and a 54% increase in employee engagement.

(Source: Northpass)

Companies can improve employee engagement in the workplace by more than half if there is an effective onboarding program. Also, time taken to achieve positive results in the workplace will equally reduce when there is an effective onboarding program.

24. Onboarding solutions statistics show that an organization with a standard onboarding program increases new hire productivity by 70%.

(Source: Talent LMS)

Effective onboarding programs can massively boost the individual productivity of new hires as they have enough time to learn the ropes. The extended time spent on onboarding new hires allows them to settle and operate more efficiently.

25. Employee onboarding statistics reveal that 77% of new hires who accomplish their first performance milestone were put through formal onboarding training.

(Source: Urban Bound)

A standardized onboarding program helps to speed things up performance-wise and enables your new hires to hit the ground running at a productive pace. Studies reveal that 49% of those who failed to do so had no formal onboarding training.

26. HR onboarding statistics reveal that 53% of HR professionals agree that employee engagement improves when onboarding is done right.

(Source: Sprout Social)

We mentioned earlier that manager satisfaction improves by about 20% when working with employees with a standard onboarding experience. Well, it seems like managers are not alone in that respect. More than half of HR professionals also agree that onboarding is vital.

27. According to onboarding statistics for 2020, 92% of new hires reportedly feel productive and important during their first month, after both cultural and operational onboarding.

(Source: Clear company)

A complete onboarding experience exposes the new hire to all the rudiments of their role and provides them with the right tools to excel. This, in turn, boosts their self-confidence to succeed.

Financial Effects of Onboarding Statistics

There is also a financial side to onboarding as it costs money to replace employees that are leaving. It also costs money to properly bring new hires up to speed about their new role. Read on to discover some of the most up to date financial onboarding statistics.

28. Companies spend an average of $3,000 to onboard a new hire.

(Source: Finance Online)

A bulk of these funds goes into training and materials that serve to bring a new hire up to speed about their roles in an organization.

29. According to statistics regarding onboarding and turnover, it cost between $3,000 to $18,000 to fill up a position left vacant due to employee turnover.

(Source: Clear company)

According to HR onboarding statistics, it cost more to employ a new worker than it cost to retain an existing one. The figure above holds for an average employee, both productive and nonproductive. However, for top-level positions, that figure can rise to as high as $2 million and more.

30. On average, replacing an employee costs about 16% to 20% of that employee’s salary.

(Source: Finance Online)

Apparently, replacing an employee these days is not as easy as it used to be. Unemployment is at an all-time low, and employees are becoming quite picky. 

Wrap Up

A great onboarding experience reduces the rate of employee turnover. Eliminating the onboarding process in your organization can result in an increased cost of running your business, and also a decreased revenue, as shown by onboarding statistics.

Have you established a standard onboarding program for your organization’s new hires?

FAQ

What does employee onboarding mean?

Employee onboarding is the process or set of programs put in place to help a new hire or employee settle down successfully into an organization.

What is included in onboarding?

The process of onboarding spans across the following: the provision of work environment information, computing access, introductions, policies, procedures and paperwork, training, and other administrative matters.

Why is onboarding important?

When done successfully, onboarding can help employers win the loyalty and commitment of new employees. This will, in turn, reduce staff turnover, improve retention rate and engagement in the workplace, increase productivity, reduce hiring expenses, and bring in more revenue. A poor onboarding experience, on the other hand, can make a new employee uneasy, and cause them to flounder, thus fuelling their need to look for another job within a short period.

How long should employee onboarding last?

This depends on the organization. Onboarding programs duration range from a week to several months — however, the longer, the better. Hence, experts advise that a good onboarding process should last between four months and one year.

What is the Buddy program in onboarding?

The Buddy program enables managers to assign each new employee to a seasoned employee and ensures that such seasoned employee sees to the proper integration of the new hire (this includes company culture, workplace ethics, company history, and the rest) until a particular period. Onboarding statistics show that the Buddy program is cost-effective, easy to implement, and quite effective in bringing new employees up to speed.

ABOUT AUTHOR

I've been fascinated by technology my whole life. From the first Tetris game all the way to Falcon Heavy. So writing for Techjury is like a dream come true, combining both my passions - writing and technology. In my free time (which is pretty scarce, thanks to both my sons,) I enjoy traveling and exploring new places. Always with a few chargers and a couple of gadgets in the backpack. Follow me on Twitter @DeyanGeorgiev87

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