Employee onboarding is both an exciting and stressful process. As the first few weeks in the workplace are the most important, HR managers should make sure people stay engaged.
If you don’t take the necessary introductory steps, new hires may quit at the very beginning. We have found some interesting numbers illustrating how investing in employee onboarding can make your company even more successful.
The following information about employee onboarding shows how valuable and important the process is for any organization. Among the benefits are increased new hire retention, productivity, and total revenue and reduced hiring expenses and staff turnover.
Employee onboarding statistics show the majority of new hires think that their companies did an insufficient job with the process. That results in problems with productivity, work culture, and engagement.
Data also show that 58% of organizations focus on administration and paperwork. What’s more, about 33% of workers consider their introductory experience lacking formality, consistency, and structure.
Employee training statistics suggest that a substantial number of people didn’t acquire the skills to perform a job at their current workplace. However, there are many alternative opportunities to improve qualifications. For example, numerous universities and learning programs provide free development courses to job seekers to improve their chances.
Organizations should prepare an onboarding experience survey for new employees to measure the success of the recruitment experience and the introductory process. Research shows that a great onboarding experience can increase the chance of high long-term satisfaction with the job by 2.6 times.
New hire turnover represents the number of people who quit in the first year. The reasons for the decision vary—unmet expectations, bad work relationships, insufficient training, etc.
To calculate the new hire turnover rate, companies need to determine what period falls under that category. Then, divide the number of new hires who left during that time by the total number of employees who quit within the same period.
Companies that successfully introduce new employees to the workplace benefit from higher retention rates and productivity, onboarding research suggests.
Some of the significant challenges organizations face in 2022 are the lack of talent and high turnover. Companies can better engage their employees by encouraging flexibility, investing in technology, and providing ongoing training and mentorship.
Employee onboarding statistics for 2022 reveal that one in five new hires isn’t satisfied with their current employment due to a disappointing onboarding experience.
However, people’s inclination to refer increases by 93% if they’re given a chance to express their goals, get to know other team members and receive all necessary information before their first day of work.
Numbers further indicate that 91% of people who had an effective introduction to the organization feel attached to their work. In comparison, only 29% of those with insufficient training feel the same.
Companies are recommended to streamline and extend the onboarding process into the first-year work to ensure better culture integration, benefits utilization, and long-term commitment of the new hires.
Every company organizes different onboarding processes for new hires, depending on the industry, position, and required skills. However, many are transitioning to the virtual world, and below, you’ll find the most important recent trends.
Team building statistics indicate that organizations have adapted their activities to the global remote work shift caused by the pandemic. That includes group names, challenges, and exercises via platforms such as Zoom, Microsoft Teams, and Google Meet.
Activity types might include icebreaker questions or group fitness classes to build relationships and improve collaboration.
The introductory process for new hires is often facilitated by software. Onboarding statistics in 2022 estimate this software market to expand at a CAGR of 2.5% in the next three years.
A good application allows for a smoother transition, which is why the demand for such products is growing. The top vendors include Workday, SAP, Pendo, WalkME, etc.
Employee onboarding trends show that virtual onboarding has become the new norm. Furthermore, the process will continue to evolve—companies need to find ways of building culture and human connections remotely to make new hires feel welcome.
Recent employee onboarding stats reveal employees complete over 50 activities during their onboarding. That ensures the new staff member is well-adapted to their role and understands the principles and ethics of the organization.
The average process includes three documents to sign, upload, and acknowledge and 41 administrative tasks. Employees also have to complete 10 learning goals related to the company culture, market knowledge, and role assignment.
Introducing new staff members to the workflow is an expense for every organization. Onboarding costs include all the necessary equipment, software, and working hours dedicated to training a new employee. So, let’s see some more information about that.
The average cost of training new employees in companies with ten to 19-person staff is 2.3% of labor expenses. However, businesses in Europe are underinvesting in the process, despite it playing an essential part in one’s ability to do their job correctly.
Training in smaller organizations is more expensive and disruptive than in bigger ones. That results in insufficient work skills, motivation, and productivity.
Large companies have the least average cost to train an employee of $722. Government and military spend the most with $1,483 and small businesses spend about $1,433. In comparison, the average expense of introducing a new hire in 2019 was $1,286.
On the other hand, the time dedicated to training has increased significantly from the previous years—from 55.4 to 64 hours annually.
Estimates show that an unfitting employee with a yearly pay of $80,000 can cause company losses of up to $24,000. These costs include hiring, onboarding, retention, and other paid activities.
In addition, 34% of CEOs consider bad hires to result in lost productivity, as supervisors dedicate 17% of their time to employees with insufficient skills.
Cost per hire refers to all expenses for filling a vacancy, from recruitment to onboarding. Several factors, like the hiring volume, impact each organization’s average spending.
For example, hiring more employees at once will lower the cost because they’ll simultaneously use the same resources. However, some roles require more time to fill, which extends the hiring process and leads to more expenses.
The statistics we gathered illustrate how beneficial onboarding can be for any organization. However, many companies still fail to organize a proper introduction process for new hires, which results in high turnover rates, poor work skills, and a lack of employee referrals.
While onboarding is a time-consuming and costly endeavor, business owners need to know it’s a long-term investment. It helps people adjust to their new role and company culture and ensures motivation and commitment to its goals.
HR professionals suggest that three months is the minimum time required for introducing new hires to the workplace practices and culture. However, onboarding should continue within the first year of employment, helping people understand their role in the company.
New employees learn about the organization and how they fit in within the first six months. Therefore, onboarding that lasts only a week or two is insufficient. Most people need a couple of months to settle in and start working independently.
Onboarding refers to the process of introducing new hires to the necessary skills, knowledge, and behaviors to become effective staff members. It includes the completion of the required paperwork and the cultural activities that make new hires feel welcomed.
If you’re wondering whether onboarding means you got the job, the short answer is yes. The process will help you acclimatize to your new organization and ensure you have a smooth start.
Onboarding is important because it adapts new employees to their role, the company’s culture, and expectations. It also helps new hires become part of the team and commit to the organizational goals.
Without a proper onboarding process, businesses have much higher employee turnover rates and loss of productivity, resulting in large sums of money lost annually. Furthermore, people who had an enjoyable onboarding are likely to stay for more years with the company.
It usually takes about eight months for new hires to reach full productivity. That’s because managers are so busy that they don’t have enough time to devote to new employees and make sure they’re up to speed.
Very few employees manage to give their best right away. Research shows new hires may take a long time to acclimate. In some cases, one to two years is needed before they’re fully productive.
Companies should view onboarding and training as an investment rather than an expense. The successful completion of these processes will save money in the long run if the necessary time and resources are dedicated.
The training cost per hire depends on variables such as organization size and industry, prior experience and skills of the new employee, and the complexity and length of training. According to onboarding statistics, the average sum is about $1,071.