Onboarding helps increase employee engagement and new hire productivity. An effective onboarding process also helps increase retention and overall company profitability. If you’re an HR professional, you understand the work required to recruit, hire, and retain top talent. While the statistics that support onboarding are overwhelming, not every business leader understands the power of the process. Here are 19 onboarding stats that will blow your mind.
- Four out of five companies don’t have a specific budget for onboarding (source)
- One-third of companies spend $0 on onboarding. (source)
- 22% of companies have no formal onboarding program (source)
- 58% of companies do not measure new-hire productivity at all (source)
- 30% of organizations have Passive Onboarding- forms and maybe some role clarification, but no information on culture or push for connections. (source)
- Half of all senior-level outside hires fail within 18 months. (source)
- Half of all hourly employees leave new jobs in the first 120 days. (source)
- 90% of employees decide whether they’ll stay with an organization, or leave, in the first six months. (source)
- Up to 20% of employee turnover happens in the first 45 days (source)
- Nearly 33% of new hires look for a new job within their first six months on the job (source)
- 23% of new hires turnover before their first anniversary (source)
Proof is in the Onboarding
- Companies with an engaging onboarding program retained 91% of their first-year workers. (source)
- Organizations with structured or formalized onboarding programs can see a 60% year-over-year improvement in revenue. (source)
- Organizations with structured or formalized onboarding programs see a 63% year-over-year improvement in customer satisfaction. (source)
- Onboarding programs can improve employee performance by 11.5%. (source)
- New employees who went through a structured onboarding program were 58% more likely to be with the organization after three years. (source)
- Organizations with a standard onboarding process experience 50% greater new hire retention (source)
- Best-in-Class businesses are 2.5 times more likely to measure their new hires’ progress in the onboarding process (source)
- Manager satisfaction increases by 20% when their employees have formal onboarding training (source)
Effective onboarding solutions are proving to be imperative systems for businesses today. Yet, there are statistics and numbers that show that not everyone understands the impact an effective onboarding process can have on a company. With the speed of technology and the continued development of AI, the businesses who invest in their onboarding processes will have a distinct competitive advantage over those who don’t. Which one will you be?
David LaMontagne is the CISO at Essium,a premiere software company that has developed a revolutionary, customizable, workforce management solution named Xenqu. Essium’s Xenqu Software leverages our Smart Content Technology to organize everything related to your workforce in one secure, digital file using the latest cloud-computing technologies and architectures.