25 Employee Onboarding Statistics & Trends You Must Know in 2024
First impressions last. Try as we might, it’s difficult, if not impossible, to erase people’s initial impressions, feelings, and experiences with someone or something. What first impression does your onboarding program give to new hires?
Employee onboarding can make or break an employee’s experience at an organization. Recent statistics show its profound impact on satisfaction, performance, and willingness to stay.
This article will look at various employee onboarding statistics, uncovering trends, challenges, and opportunities in onboarding.
Contents
The current state of employee onboarding
Preboarding statistics
Employee onboarding duration and timeline
The costs of employee onboarding
Employee onboarding impact on talent retention
Employee onboarding in a remote setting
The future of employee onboarding
The current state of employee onboarding
Employee onboarding is a crucial stage of a new hire’s journey with the company and lays the foundation for the employee-employer relationship. When done well, onboarding positively impacts performance, job satisfaction, and retention.
1. 34% of employees have not witnessed any onboarding program at their organization. (Talmundo)
Contrary to what most may believe, many employees today still lack proper onboarding when joining a new organization.
2. Only 29% of employees say they feel fully prepared for their new role and ready to excel after their onboarding. (Gallup)
This indicates that many organizations fail to achieve one of the two main onboarding goals: Getting new hires fully operational and ready to succeed in their role.
3. 81% of new hires report feeling overwhelmed with information during the onboarding process (Glean).
This issue originates from the extensive use of digital tools—81% of new hires state their organizations employ at least six apps or digital tools, while 33% use eleven or more. This results in information being dispersed across several locations, with 42% of newcomers agreeing that this non-uniform approach is problematic.
Inadequate leadership or mentorship further complicates the situation, leading to 38% of new hires feeling uncertain about where to find help or answers.
4. Employees with an exceptional onboarding experience are 2.6 times more likely to be satisfied at work. (Gallup)
The same survey revealed that only 12% of newly hired employees believe their organization provides a strong onboarding experience. This presents a huge opportunity, as employees who benefit from comprehensive onboarding are 2.6 times more likely to feel satisfied with their jobs.
5. 89% of employees report being engaged at work following an effective onboarding experience. (Bamboo HR)
According to a survey compiled by BambooHR, 89% of employees reported that an effective onboarding process significantly boosted their engagement at work. Additionally, these employees are 30 times more likely to experience high job satisfaction compared to those who found their onboarding process inadequate.
Preboarding statistics
Preboarding refers to the period between the moment when a candidate signs the employment contract and their first day on the job. An effective preboarding process keeps new hires engaged and excited to start and sets companies up for successful onboarding.
6. A strong preboarding process can increase new hire retention by up to 82% while minimizing the number of non-starters. (Talmundo).
Preboarding aims to achieve two main objectives: Keeping new hires engaged and providing them with essential information to prepare for their first day. This information may include practical details, administrative procedures, and a 30-60-90-day plan.
7. Best-in-class companies are 35% more likely to begin the onboarding process before day one than all other companies combined (69% vs 45%). (Aberdeen)
Successful companies understand that it is important to show new hires that their engagement with the company is top of mind.
8. 67% of companies complain about more than a 10% drop-off rate pre joining. (Leena AI)
Sometimes, there is a considerable amount of time between the moment a candidate signs their employment contract and their first day. During that time, they may get second thoughts about their choice and, if another company comes along in the meantime, choose to work for an organization that does preboard their new employees.
Employee onboarding duration and timeline
The exact duration of an onboarding process differs based on the organization and the role people are in. This means it’s difficult to define the ideal duration of an onboarding. We can, however, look at what employees think of the duration of their onboarding.
9. 52% of onboarding processes last less than a month. (Talmundo)
This study divides the duration of onboarding processes into four categories, according to employees who started their jobs recently:
- 1 week: 14%
- 1 month: 38%
- 3-6 months: 29%
- >6 months: 19%
10. 48% of HR professionals believe onboarding should last at least three months. (Talmundo)
Interestingly, the same study shows that 52% of employees state onboarding lasted less than a month (see the statistic above). So, where does the difference between what HR perceives as an ideal onboarding duration and the actual length of the onboarding process stem from?
11. 56% of employees say they need just one or two days to ease into their new role. (Bamboo HR)
According to BambooHR, 30% of people prefer a slower, more gradual onboarding before starting their new duties. This illustrates the difficulty of getting employee onboarding right; every person has their preferences, and while some may want a short onboarding, others may be happier with a more extended version.
12. Younger generations are more likely to want to dive into work on day one. (Bamboo HR)
Generation Z employees show a distinct preference for starting their job duties immediately, with 22% eager to dive into work on day one. This contrasts with Millennials (15%), Gen X (13%), and Baby Boomers (12%), reflecting a generational trend towards a faster, more proactive approach to onboarding.
The costs of employee onboarding
Just as there is no one-size-fits-all answer to how long employee onboarding should take, there is also no fixed cost associated with onboarding new hires. It depends on factors such as the duration of the process, the tools used throughout that process, the role, regulations, and, of course, the available budget.
13. In the U.S., onboarding costs for an average small to medium-sized business are between $600 and $1800 per new hire. (Leena AI)
The average onboarding cost per employee varies depending on the company size, the industry, legal and other requirements, and more.
14. Larger organizations in the U.S. can spend over $3000 per employee during their onboarding. (Leena AI)
Naturally, larger organizations tend to have larger budgets to onboard their new employees than their smaller counterparts. As such, they are more likely to spend more on employee onboarding.
Employee onboarding impact on talent retention & satisfaction
The onboarding period is a bit like a couple’s honeymoon. It lays the foundation for a happy, lasting relationship between the employee and their employer – or at least that’s what it should aim to do.
15. 70% of new hires decide within the first month whether a job is the right fit. (Bamboo HR)
According to the same BambooHR survey, 29% of people decide this even in their first week. This stresses the importance of having a strong and effective onboarding process.
16. People who did not have a positive onboarding experience are twice as likely to look for a new job shortly. (Digitate)
The onboarding period sets the tone for the employee-employer relationship. New hires think of their onboarding as a reflection of what their experience as an employee of the company will be.
17. Organizations with a formal onboarding process have a 50% higher retention of new hires than those without. (Talmundo)
According to the same study, retention increases by 16% when certain onboarding tasks are automated so that new hires can have access when it suits them best.
18. 64% of employees working for large companies are satisfied with their onboarding vs. 48% of employees in smaller companies. (Paychex)
The difference may be due to the fact that larger companies often have more budget and resources available to create a well-structured and partially automated onboarding process.
19. Generationally, Gen Zers are the most likely to feel satisfied (62%) compared to just 43% of Gen Xers. (Paychex)
While it’s interesting to understand the generational differences, practice caution when applying this view to an entire generation. Every individual is different, after all.
Employee onboarding in a remote setting
Since 2020, hybrid and remote work has seen a massive surge. In the U.S., for example, a study by McKinsey found that 35% of employees could work from home full-time while 90% could work in a hybrid set-up.
Naturally, this rise in remote working requires an effective remote onboarding process.
20. Among remote employees, 63% feel that their training during the onboarding process was inadequate. Additionally, 60% reported feeling disoriented after their most recent onboarding experience, and 36% found the process to be confusing. (Paychex)
The onboarding experience for remote employees often leaves them feeling undertrained, disoriented, and confused. This suggests organizations need to refine their remote onboarding procedures to ensure new hires feel well-prepared and integrated into their roles, thereby reducing potential turnover.
21. 37.4% of HR professionals consider remote onboarding the primary challenge when filling a job position. (Workable)
Remote and hybrid workforces offer numerous advantages, and forecasts indicate that remote work is likely to persist and even increase in popularity. A recent survey revealed that 37.4% of HR professionals identified onboarding as the number one concern when hiring remote employees for job positions.
The future of employee onboarding
What will the future of employee onboarding hold, and what will future employee onboarding statistics look like? As for the latter, one thing is sure: there still is a lot of room for improvement.
22. More than 50% of organizations have transitioned to online applications, virtual hiring, and virtual onboarding since the COVID-19 pandemic. (Leena AI)
Post-COVID-19, HR professionals adapted to virtual hiring and onboarding, with 54% of companies adopting virtual onboarding and 59% transitioning to online applications, moving traditional processes online.
23. Re-onboarding may become a common thing. (Paychex)
Re-onboarding is the concept of all employees going through a new introductory process, not just new hires. It can be a great way to check in with your people and boost engagement. Re-onboarding increases employee retention by 43%.
24. HR practitioners see technology as the missing piece in their onboarding arsenal, with 68% planning on using it in the near future. (Talmundo)
When asked what’s currently missing in their organization’s onboarding, HR professionals said technology was the number one thing, followed by accurate measuring and management involvement.
25. 92% of HR professionals are familiar with artificial intelligence (AI) automation in onboarding processes. (Leena AI)
It’s interesting to see this statistic, given that HR often indicates that technology is often missing from their company’s onboarding process.
The question is, what do people mean by ‘being familiar’ with something? Does this indicate they’ve heard of it or that they are actually using it? It’s clear, however, that AI automation will play a significant role in onboarding processes in the future.
Key takeaways
- Employee onboarding is critical in a new hire’s decision to stay with or leave a company.
- While everyone seems to agree on the importance of a well-structured onboarding process, most of the employee onboarding statistics mentioned show that we still have a long way to go before we reach that 100% satisfaction score.
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