Employee Onboarding Statistics Every Employer Should Know in 2023

Speaking of numbers and statistics: have you ever wondered how much onboarding costs your organization? Here is helpful information to get a good idea of your onboarding budget: 

• The average cost of onboarding is around $4000.
• Replacing an employee costs around 20% of the employee’s pay.
• A bad hire costs up to 30% of the employee’s first-year earnings. 

Did you know that 88% of employees feel like their company could improve their onboarding program? Indeed, the majority of organizations could improve company productivity and staff retention:

• The first 45 days of employment account for up to 20% of employee turnover;
• 58% of organizations only focus on the administrative tasks of onboarding processes.
• 28% of recruits leave their jobs after six months.
• New employees take about 8 to 12 months to become as efficient as their coworkers.

Now that we have seen how a poor onboarding experience can have a direct impact on employee retention and company productivity, we must highlight the benefits of successful onboarding. Here are some key components:

• Employees integrated with effective onboarding programs are 69% more likely to stay for three years in your company.
• 78% of employees would stay with their company if they saw a career path during their onboarding.
• Managers are 20% more satisfied with employees who have received formal onboarding training.
• Employees benefiting from extended onboarding programs reach their first milestone 34 times faster than other employees.

The hiring process is expensive, partly because negative onboarding experiences can get quite costly. Moreover, there is a strong correlation between poor onboarding processes and high voluntary turnover rates.

Disappointing recruits during their first days in the company means multiplying hiring and onboarding costs at a high rate. Who would want to start hiring and onboarding for the same position over and over again?

There is no doubt that a positive onboarding experience must be at the core of your employee engagement strategy. Luckily, our blog is full of great tips to improve your employee onboarding practices and overcome onboarding challenges!

• Learn about the 4 steps of a structured onboarding process;
• Build well-designed onboarding plans; 
• Discover original onboarding activity ideas; 
• Use our free onboarding email templates; 
• Improve your remote employee onboarding process;
• Follow our ultimate guide to employee onboarding.

Now that you know just how revealing and vital onboarding statistics can be for your business, you might wonder how to collect this data. HR software is the best way to track these metrics. Key Performance Indicators indicating employee retention rates and turnover rates over a period of time are a great way to visualize if your onboarding programs have been successful.

Another useful way to collect feedback on onboarding practices is to send employee surveys assessing how you could have improved employee onboarding experience. Indeed, employee feedback is key to improving your entire onboarding process, and a great driver of employee engagement!

“We track how long an employee stays with our company, which we then compare to the employee’s impression of their own onboarding. Based on a survey completed at the end of onboarding, we realized that these first few weeks are absolutely crucial in retaining talent later. After all, first impressions are crucial!”

– Maciek Kubiak, Head of People at PhotoAid

Did you know that automating onboarding tasks results in a 16% increase in hire retention? Folks HR’s onboarding features let you build efficient onboarding programs and assign and schedule tasks directly on your platform, while sending automated reminders to avoid delays!

Sources : 

https://www.glassdoor.com/employers/blog/hidden-costs-employee-onboarding-reduce/

https://www.peoplekeep.com/blog/employee-retention-the-real-cost-of-losing-an-employee

https://www.kallidus.com/resources/blog/10-employee-onboarding-statistics-you-must-know-in-2022/

https://teamstage.io/onboarding-statistics/

https://www.gallup.com/workplace/235121/why-onboarding-experience-key-retention.aspx

https://www.clickboarding.com/what-is-onboarding/

https://elearninginfographics.com/onboarding-new-hire-statistics-need-know/