New Hire Onboarding: The Numbers to Know
Engagement, performance, retention…oh my! There’s no shortage of things to cross off your list when you’re in the process of onboarding new hires to your organization.
One of the most important things to remember is that new hires who experience a positive, supportive onboarding experience are more likely to have higher work productivity rates. It’s a pretty logical equation.
So why, then, are so many companies missing the mark when it comes to new hire onboarding? HR, Talent Acquisition and Talent Management teams have each invested hours of time and resources to meticulously recruit and interview candidates. When the continuity of a process as integral as onboarding is disrupted by a poor experience, you’re fracturing the propensity for that new hire to stick around for the long run.
Think of it this way: if you move candidates along to the onboarding phase and it turns out to be a poor or negative experience for them, do you think they’ll want to advance as a new hire…or a no hire? I bet they’d be leaning towards the latter.
Not taking the time to ensure an effective onboarding experience seems like a significant waste, doesn’t it? That’s why great employee onboarding is so critical to the success of your new hires and ultimately, the success of your company’s bottom line.
Don’t let your new hires become the statistic of poor onboarding. It’s time to awaken from the nightmare of awful onboarding! Check out these new hire onboarding statistics for a reminder about how valuable onboarding is for your organization.
Lack of onboarding
1. Only 37% of companies extend their onboarding programs beyond the first month. (source)
2. A surprising 22% of companies have no formal onboarding program. (source)
3. 60% of companies fail to set milestones or goals for new hires. (source)
4. New hires turnover 23% of new hires turnover before their first anniversary. (source)
5. Up to 20% of employee turnover happens within the first 45 days. (source)
6. Organizations typically lose 25% of all new hires in a single year. (source)
7. SHRM.org states employee turnover can be as much as 50% in the first four months for hourly workers and 50% in the first 18 months for senior outside hires. (source)
Negative onboarding experiences
8. New hires who had a negative onboarding experience are twice as likely to seek a different opportunity in the immediate future. (source)
9. A Jobvite survey sought to determine why new hires left within the first 90 days:
- 43% say their day-to-day role wasn’t what they expected
- 34% report that an incident or bad experience drove them away
- 32% did not like the company culture
High onboarding costs
10. According to Gallup, the average cost to replace an employee ranges from one-half to two times the employee’s annual salary. (source)
11. It takes new hires eight to 12 months to gain proficiency comparable to a new hire’s tenured co-workers. (source)
So does onboarding work?
With these statistics, you may wonder if onboarding is as effective as the professionals claim it is. It is, and we have statistics to prove just that. These numbers don’t lie:
12. Organized onboarding programs have been shown to increase retention by 25%. (source)
13. Over half of HR employees believe employee onboarding is vital for employee engagement. (source)
14. Organizations with standardized onboarding programs have experienced an 11% uptick in employee performance. (source)
15. 83% of the highest performing organizations began onboarding prior to the new hire’s first day on the job. (source)
16. Organizations with a standard onboarding process have 54% greater new hire productivity. (source)
17. Research by Glassdoor discovered organizations with a strong onboarding process can improve new hire retention by 82% and productivity by more than 70%. (source)
Making their first day the best first day ever
There’s no confusion about whether onboarding is an essential part of joining a new organization. The need for exceptional employee onboarding is obvious and is vital to ensuring your new hires begin their journey at your company on the right foot.
With a seamless, mobile-first onboarding solution like Click Boarding, the process moves more quickly and efficiently without the pain of manual onboarding and paperwork. You’ll optimize a new hire’s time, save the organization money and jumpstart employee engagement.
Contact us today and find out how we can help!