Your onboarding practices go a long way in making your employees prepared for their jobs and in making them feel like a part of the team. Understanding onboarding statistics can help you know where to better place your time and effort. It can also help you convince higher-ups of the need for a longer-term or more intensive program to help with employee retention.
We list the top employee onboarding statistics for 2024. These stats explore the impact of programs, the challenges small businesses face with onboarding and retention, and current onboarding trends.
Key Takeaways
- 89% of employees who had an effective onboarding experience are engaged at work.
- The average cost of onboarding is around $4,100 while finding a new employee costs up to twice their salary.
- 61% of employees think traditional onboarding is dull.
- 60% of CEOs say onboarding is a priority, but only 41% of Chief HR Officers (CHROs) make it their primary focus.
- The use of AI and onboarding automation via software are trending in onboarding.
How Onboarding Affects Retention
Employee retention is a top priority—and a good orientation program increases retention significantly.
1. 70% of employees decide whether to keep a job in the first month
First impressions are vital for new employees because, more than ever, they are willing to make quick decisions on whether to stay with a job. According to Create LMS, the main reason for leaving in the first month is poor onboarding—so making that introduction to your company as engaging as possible is a must.
(Source: BambooHR—Definitive Guide to Onboarding in 2024)
2. 89% of employees who had an effective onboarding are engaged
An effective onboarding experience addresses a new employee’s needs—helping them understand their role and responsibilities and welcoming them as part of the team. This process should also include check-ins, which help a new employee feel valued.
(Source: BambooHR—10+ Onboarding Statistics Reveal What New Employees Really Want in 2023)
3. Companies with poor onboarding & training are 2× as likely to lose employees
TeamStage found that inadequate training accounts for almost 40% of resignations—but that percentage can double when combined with a less-than-impressive onboarding program. Failing to prioritize these can result in increased employee turnover, costing your business in the long run.
(Source: TeamStage)
Cost of Onboarding
Orientation programs are not cheap, but they are much cheaper than hiring anew; plus, many parts of a successful orientation only take a little extra time.
4. Average cost of onboarding is around $4,100
This cost includes training, loss of productivity during onboarding, and soft costs like welcome kits. While seemingly expensive, it’s still far cheaper than the cost of hiring a new employee due to turnover, which can cost up to twice the employee’s annual salary.
(Source: Connecteam)
5. Many valuable onboarding tasks cost nothing at all
In a survey by BambooHR, 65% of employees say their biggest onboarding frustration was simply not having a clear point of contact for questions. Another 44% said that their frustration was not understanding who their manager was. The simple acts of designating points of contact and drafting out an organizational chart are easy and free ways to resolve these. Making sure that a new employee has time to connect with their team is also a no-cost way to make them feel welcome.
(Source: BambooHR—Definitive Guide to Onboarding in 2024)
What Employees Want During Onboarding
Understanding what employees need or miss during onboarding can help you tailor your program for the most benefit for them and you.
6. 15% of employees still don’t understand benefits after onboarding
Benefits play a vital role in employee retention, but 15% still don’t understand what they’re entitled to or how to get them. Your onboarding program needs to go beyond not only simply filling out the onboarding paperwork, but also teaching them the types of benefits you offer and how to use them.
(Source: BambooHR—10+ Onboarding Statistics Reveal What New Employees Really Want in 2023)
7. 62% don’t get enough training on their company’s products and services
Besides knowing the steps to handle their job, employees need to know a bit more about the company, starting with what the company does or sells. Understanding the end game for a company—its products and services—helps employees understand why their job is important and helps them feel part of the team. This affects their pride, performance, and retention.
(Source: BambooHR—Definitive Guide to Onboarding in 2024)
8. 87% of new hires hope to make a friend at work
With so much time spent in the office, making a friend is a natural priority. Employers need to consider that in their onboarding by providing opportunities to connect with their coworkers in a less formal, work-based way. Some examples of doing this include providing a welcome lunch or personally inviting them to activities, like taking break time walks or joining the company softball team.
(Source: BambooHR—Definitive Guide to Onboarding in 2024)
9. 91% that get company culture onboarding feel connected to the workplace
A company’s culture is important to employees, especially millennials and younger employees. Orientations should include an explanation of the company values, social programs, and working environment. This can make for a cohesive and connected workforce—one that’s not just tied by duties but by ideals and values.
(Source: BambooHR—10+ Onboarding Statistics Reveal What New Employees Really Want in 2023)
10. Setting expectations for career goals is important when onboarding
A big marker for employees to stay would be understanding their professional development opportunities within the company. Qualtrics’s study showed that in North America, employees who agree that their career goals can be met are 13% more likely to have higher engagement and 9% more likely to have higher stay intentions (3+ years).
With employees deciding in the first months whether to stay, you can’t afford to wait to show them that they have a future with your company. 29% of employees say career growth is the most important thing in a job, yet it ranks 20 of 25 on how well they think their company is doing.
(Source: Qualtrics)
11. 61% find traditional onboarding boring and unproductive
Traditional onboarding may be tried and tested—but the lack of innovation can lead to disengagement. A boring onboarding experience will not engage an employee and can leave a poor impression. It also makes them less likely to remember what they are told, leaving your onboarding strategy ineffective.
(Source: Appical)
Onboarding Challenges
Onboarding is vital, but setting it up can be challenging. The most common hurdles are about how to prioritize onboarding elements, how long it should run, and even how much to prioritize the process itself over other administrative tasks.
12. 50% of CHROs focus on hiring, while only 41% focus on onboarding
Even though 60% of CEOs say retaining and engaging employees is their top priority for 2024, less than half of their Chief HR Officers are focusing on onboarding, which has been shown to play a vital role in employee retention.
(Source: Qualtrics)
13. 62% say their first impression of a company is still accurate
After hiring, onboarding is the next place where employees get their impression of your company. It’s vital that onboarding leaves the best impression while also reflecting the culture and mission of your business.
(Source: BambooHR—Definitive Guide to Onboarding in 2024)
14. 86% want time to get up to speed; 36% are frustrated with lengthy onboarding
People learn and complete tasks at different rates, and this can affect their perception of onboarding. The simplest approach to take on any type of learner would be to automate anything that can be streamlined and tailor onboarding based on the role. A good supervisor will also know when to push for faster onboarding and when to take a step back.
(Source: BambooHR—Definitive Guide to Onboarding in 2024)
15. Younger generations are more eager to get started with their roles
BambooHR found a surprising insight in their survey: 22% of Gen Zers want to get to work immediately—much higher than millennials (15%), Gen Xers (13%), and baby boomers (12%). If you’re hiring from this demographic, then it’s good to kick things up a notch.
The sooner you can get employees started on their day-to-day jobs, the better—not only does it help productivity, it makes them feel part of the team. However, that does not mean onboarding has to stop. Schedule time for onboarding work in addition to daily tasks, offer computerized training so they can get tasks done at their desk, and have regular check-ins to be sure they are settling in.
(Source: BambooHR—Definitive Guide to Onboarding in 2024)
16. 49.7% of respondents say remote onboarding is a challenge
Per USA Today, 35% of respondents to the American Opportunity Survey say they work remotely full-time, while 23% say it’s part-time. However, HR officers say it’s a challenge, especially in learning to reach these people on a personal level and integrate them into their company’s culture.
(Source: Workable)
17. 36% found their onboarding experience at a new remote company confusing
Many businesses still haven’t gotten the hang of remote onboarding—and this has a detrimental effect on employees. Compared to in-office employees, remote employees say they feel less trained, more disoriented, and less valued after orientation.
(Source: US Career Institute)
18. 81% of new hires say they feel overwhelmed with information
Onboarding can be a firehose of information, leading to employees getting overwhelmed and being unable to remember the experience. One way to alleviate this is to spread out the process, which can also let employees get to work sooner. Another way is to provide them with access to a library of documents (with quick view summaries) so they can look things up later.
(Source: Glean)
Onboarding Trends
AI, gamification, and the use of technology are all helping make onboarding easier and more enjoyable.
19. Market for onboarding software is expected to reach $1.34 billion by 2025
Automation makes onboarding easier, which frees up time for your HR personnel. It also gives employees some autonomy in their onboarding process, letting them get started with their jobs while still doing some training. Finally, onboarding software makes it easier to track employee progress and statistics.
(Source: Industry ARC)
20. 68% use AI for onboarding in the US, while 90% recognize its importance
As artificial intelligence grows in popularity and use, it will become more and more integrated into onboarding programs. Even now, AI can be a time saver for creating onboarding documents and other materials.
(Source: Appical)
21. 83% that undergo gamified orientation enjoy it and feel more motivated
Gamification has been shown to increase engagement, which makes the less interesting tasks of orientation more enjoyable. Adding this can also make for a different approach to onboarding, which younger generations may find more attractive compared to “traditional” approaches.
(Source: Appical)
Onboarding Statistics Frequently Asked Questions (FAQs)
Very! Businesses with a strong onboarding program have higher retention and better employee wellness. Onboarding and retention statistics show that a good onboarding program helps employees feel engaged and positive about their role in the company.
The 4 Cs are the building blocks of an effective onboarding program. They are as follows:
- Compliance: Company procedures, policies, requirements, onboarding documents like I-9s and the company handbook
- Clarification: Details about assignments and the employee’s role in the company; answers to any questions the employee has during the process
- Culture: Understanding the company values and mission, atmosphere, and expectations of the workplace
- Connection: Establishing relationships within the organization, team-building, networking, and icebreakers
Onboarding is more than getting the legal paperwork and passing on rules and expectations. The best onboarding programs get a new employee fully integrated into the company so that they can perform their duties to the best of their ability and feel comfortable in the workplace and a valued part of the team. This leads to higher retention. Employee onboarding statistics show that a good onboarding program that includes company culture and career progress results in stronger and happier employees even after the program is done.
Yes! Onboarding remote workers is extremely important because they don’t have the same organic interactions that on-location workers do. Check out our article on virtual onboarding ideas for some of the best ways to make your remote employees feel welcome and valued.
Some trends come and go, like fashion, but onboarding trends are important because they reflect the needs of the current and future workforce. As you consider them, think about your own company’s culture and how adopting a trend might improve your onboarding retention.
Bottom Line
Employee onboarding statistics prove that a strong onboarding program improves employee retention and wellness. Understanding these and other onboarding statistics helps you make sound decisions when it comes to allocating resources for building and improving your small business.
