120+ Vital Onboarding Statistics Everyone Must Know in 2023

Historically, the onboarding process is the most-used tactic by companies seeking to hire and retain talented employees. According to a Brandon Hall Group study, firms with vital onboarding procedures increased productivity and new hire retention rates by more than 70% and 82%, respectively.

Again, a 2019 survey by CareerBuilder and SilkRoad showed that 93% of employers agreed that a new hire’s decision to stay with a firm is influenced by their onboarding experience. To better understand the impact of the onboarding procedure on organizations and employees, here are some handpicked onboarding and relevant HR statistics to know.

Pandemic & Onboarding Statistics

When hiring and onboarding new staff, the epidemic produced various challenges. Here are some significant figures illustrating how COVID-19 has affected hiring in general and onboarding specifically:

COVID-19 Effect on Onboarding

According to research, the leading recruitment challenges for firms today are remote hiring, onboarding, and training new employees.

1. 37.4% of recruiters stated that the difficulties in onboarding and training remotely were their top concerns during the pandemic.

2. For 33.1% of recruiters, remote recruiting is highly important.

3. 46% of businesses employ ten or more additional staff. These statistics mean firms were regularly prepared to recruit new employees during the epidemic.

4. During COVID-19, some critical concerns surfaced, with 30.6% of companies experiencing internal financial distress and 31.7% of job candidates feeling uncertain about their job security.

5. As the pandemic subsides, 21.6% of managers revealed that onboarding new employees is one of their top three concerns for the future.

6. Additionally, managers anticipated that some of their most significant issues in a post-COVID-19 environment would involve onboarding, appraisal & candidate engagement.

Top Recruitment Concerns During the Coronavirus Pandemic

Hiring and Retention Effect

7. Only 3% of companies estimated that by 2021, more than 1 out of 3 employees will resign. These stats show that organized onboarding reduces turnover and promotes.

8. Similarly, 61% of businesses expect new workers to stay on board for at least two years. The onboarding process is carried out for several months to make the most of their stay.

9. 37% of employers stated that one of the main reasons their employees resign is terrible work-life balance.

10. Some of the most desirable qualities recruiters searched for during COVID-19 were 54.2% self-starter &self-motivated and 67.4% resilience & flexibility.

11. Due to the epidemic, remote hiring became necessary, and 51.7% of managers see candidate engagement as their top difficulty. Others cite appraisal (42.4%) and new hire onboarding (49.7%).

12. However, nearly 68% of companies claim they successfully transitioned to remote hiring and onboarding because they had the required infrastructure even before COVID-19 came.

The easiest way to ensure a smooth transition to remote onboarding is to employ video conferencing software and follow crucial hiring best practices. Experienced and inexperienced workers can use this technology to learn how to make facial expressions and eye contact (two vital skills for effective interpersonal communication).

Staff Onboarding Statistics

Poor onboarding frequently causes new hires to resign. Businesses must continually improve onboarding for new hires to become long-term employees. The following are the main statistics about the value of Onboarding:

13. A successful onboarding experience is essential in influencing a new employee’s decision to remain with the organization. This is according to 93% of employers.

14. Based on the report from 53% of HR experts, improved onboarding increases employee engagement.

15. The primary goal of onboarding programs is to integrate employees with 62% of corporate culture and 52% of comprehensive compliance requirements.

16. The three Ps of an onboarding program are performance, paperwork, and people.

17. Compared to companies with unsuccessful onboarding, organizations with excellent onboarding had 33% more engaged employees.

18. Involving a mentor or buddy throughout onboarding is deemed extremely useful by 87% of firms.

19. Good onboarding experiences increase a worker’s commitment to their employer by 18X.

Onboarding Challenges

20. Only 12% of employees believe that their organizations have effective onboarding procedures for new hires, according to research by Gallup in 2017.

21. According to Gallup, 88% of employees believe that their companies’ onboarding initiatives need improvement.

22. According to 76% of HR executives surveyed in 2018,  their companies underuse employee onboarding procedures.

23. Similarly, 36% of HR experts said they could not automate and plan onboarding processes because of a lack of technology.

24. 20% of new hires often don’t refer a company to a friend or relative after onboarding.

25. Additionally, 40% of new hires claim that HR frequently responds to their job inquiries very slowly.

26. Despite the process’s apparent flaws, 10% of organizations still need to improve their employee onboarding procedure.

27. Despite the well-known usefulness of several HR indicators, 55% of firms claim they need to assess the success of onboarding initiatives.

28. Around 10% of employees left their employer due to inadequate onboarding experience, which negatively affecting employees.

29. Approximately one-third of worldwide executives in 2020 reported that their Onboarding level needed to be met.

Best Practices for Onboarding

30. According to HR professionals, on average, new hires must finish 54 onboarding tasks.

31. A new hire must typically finish three documents and 41 administrative activities. Ten other results must also be accomplished.

32. With so many onboarding requirements, 56% of new hires prefer a mentor or buddy to guide them through.

33. It usually takes new hires between eight and twelve months to become as productive as their seasoned colleagues.

34. This is why 37% of dynamic organizations offer onboarding programs that last at least a month, or about 1 in 3.

35. Generally, world-class organizations offer pre-boarding activities 53% more frequently.

36. One-on-one time with their direct manager is a critical component of onboarding, according to 72% of employees.

37. Employees with high talent levels and those with low talent experience the exact effects of disengagement.

Studies and HR professionals emphasize the importance of having friends and good connections in the office. This demonstrates the importance of relationships.

Staff Hiring & Onboarding Statistics

38. A record high of 6.6 million job vacancies from 50% of US firms were present at the beginning of 2018.

39. 63% of US firms mass-hired permanent workers by the second half of 2018.

40. The quality of hire (31%), retention rate (23%), and time to hire (21%) are the leading success indicators for recruiters.

41. Many firms provide employee discounts (31%), remote work options (25%), and more paid time off (22%) to entice recruits further.

42. In 2018, social media (47%) and the firm career website (21%) represented the top investments for building an employer brand.

43. Additionally, 77% of recruitment efforts are made on LinkedIn for that year. Facebook is in second place with 63%.

44. Similarly, 25% of recruiters use Instagram for hiring purposes.

45. The demand for tech workers, such as statisticians (33%), mathematicians (29%), and software engineers (30%), will increase during the next ten years.

46. Early in 2019, it was anticipated that 45% of businesses would have raised starting pay for new job offers.

47. Millennials are expected to make up 50% of the US workforce by 2020.

Hiring Problems

48. According to 29% of workers, their employer was successful in properly onboarding them, which they believe is crucial in ensuring that they are more prepared to begin their new jobs.

49. Similarly, only 63% of applicants are happy with how most employers interact with them.

50. In 2017, 69% of candidates wished to see an improvement in employer response time. According to 74% of recruiters in 2018, the future of hiring would be more difficult.

51. 72.8% of businesses reported finding it challenging to obtain qualified candidates, and finding staff with the required skills worried 45% of companies in 2018.

52. 56% of US businesses were forced to provide signing bonuses to new hires due to a shortage of low-skilled workers.

53. Implicit prejudice was highlighted by 60% of recruiters as a severe issue in the US workforce.

54. Unfilled positions for experienced or highly qualified employees will cost a corporation between $1,400 and $2,300.

Candidate Experience

55. Only about one-third of new workers are happy with the learning and training opportunities their existing employment provides.

56. Similarly, 32% of new workers are happy with their employers’ professional advancement prospects.

57. Also, about half of employees complain that their current employers don’t offer them enough opportunities for professional growth.

58. As a result, 73% of workers who do not have access to training and development options outside of the workplace claim that they will likely enroll if such opportunities become available.

59. Meanwhile, 75% of recruiters believe that Glassdoor ratings are valuable when hiring decisions.

60. Additionally, employment selections may be influenced by prior experience (55%) and conversational abilities (49%).

61. Additionally, it was discovered that a suitable onboarding procedure increased new hire quality by 70%.

Diversity and Inclusion in Hiring

62. 67% of applicants, according to Glassdoor, desire to work on a diverse team.

63. Employers share this attitude, with 69% of CEOs viewing diversity and inclusion as crucial issues.

64. According to 78% of recruiters and hiring managers, diversity is the primary trend driving hiring procedures.

65. However, just 30% of recruiters have specific goals and procedures for employing people of all races and genders.

66. Only 25% of companies set gender diversity goals in 2017.

67. Nevertheless, 37% of recruiters actively intended to interact with more diverse prospects in the same year.

68. 57% of recruiters claimed they concentrated on luring diverse individuals in 2018.

The most robust onboarding program will only be effective if a business can find high-quality recruits. Application tracking software is a practical method to improve your hiring procedure.

Leading Applicant Tracking Tools

Bamboo HR

Bamboo HR is a leading applicant tracking and human resources tool capable of managing applications, a module for the employee lifecycle, and reporting.

SmartRecruiters

SmartRecruiters is a complete HR management system that handles hiring, onboarding, posting jobs, and employee recommendations.

WorkDay

Workday is a world-class enterprise HR solution with reporting, analytics, time management, succession planning, and applicant tracking features.

Submittable

Submittable is a platform for managing applications that includes tools for managing responses, team messaging, and review monitoring.

GreenHouse

The greenhouse is a cutting-edge recruiting tool that enables pipeline management, automatic social media posting, video-based training, and data quality checking.

Onboarding Business Effect Statistics

One of the effects of poor onboarding is financial losses.

Financial Factors

69. By 2022, global onboarding will reach a market size of $793 million.

70. An employer costs about $4000 and takes 24 days to hire new staff.

71. In the United States, employers lost $ 617 billion to employee turnover in 2018.

72. The top 10 vendors in 2019 held an onboarding market share of 58.7% worldwide.

73. In 2019, companies spent an average of $ 3000 to Onboard each new hire.

74. 80% of interviews were conducted poorly by companies.

75. Companies are likely to lose by 1 to 2.5% in revenues due to low productivity by new hires.

76. The performance of new hires improves with an effective Onboarding program.

77. Voluntary turnover caused organizations to lose over $ 630 billion in 2020.

78. 51% of employers say that in the next 3 to 5 years, using health and wellness benefits will be a tool to keep employees’ loyalty, and keeping talents will be more critical.

Non-Financial Factors

79. According to a study conducted in 2017, 87% of employees believe that companies will support their work-life balance needs.

80. When employees have formal onboarding training, their manager’s satisfaction rises by 20%.

81. 61% of businesses agree that they have healthier lifestyles due to their company’s wellness program.

82. 84% of companies report having financial security programs such as debt management tools, student loan counseling, and access to budgeting resources.

83. 78% of employee well-being is integral to business plans.

84. Companies experienced better retention by 16% for new hires when onboarding tasks were automated.

85. Automating onboarding tasks resulted in an 18% rise in the performance of new hires.

Productivity and Employee Engagement Statistics

There is a substantial connection between high-quality onboarding and high employee engagement (Enboarder, 2020).

Engagement Benefits

86. Onboarding programs can increase by 25% the level of employee retention. Also, a well-structured onboard plan can improve the performance of new employees by 11%.

87. 56% of employees reported that additional paid time off would make them loyal to an organization.

88. 56% of companies operating onboarding programs report experiencing better employee engagement.

89. According to a study conducted in 2018, 77% of employees with a formal onboarding process achieved their first performance goals.

90. 50% of those unable to meet their first performance goals needed proper onboarding training.

91. According to a survey conducted by SHRM, 89% of Human resource leaders said that check-ins and feedback positively impact their organizations.

92. 92% of employees believe showing sympathy is necessary for increasing employee retention.

93. Employees participating in an organized onboarding program are 69% more likely to remain in an organization for three years.

94. Socialization is essential to 76% of new employees.

Issues in Onboarding Engagement

95. According to a recent Qualtrics report, 62% of US workers are generally engaged.

96. According to the same report, 42% of workers in Hong Kong and 56% in Australia are unemployed in 2020.

97. Businesses spend $37 billion a year on the maintenance of unproductive employees.

The foundation of a worker’s experience is laid during onboarding. A poor onboarding experience may lead to subpar performance and disinterested workers. The onboarding process might impact how long an employee stays with your business. By adopting employee tracking software, you can better monitor how they spend their time.

Employees Retention Statistics

A significant factor in employee retention is onboarding. Do you have an effective onboarding program at your company? These statistics on retention will reveal how it relates to onboarding.

Standard Onboarding

98. Besides pay, 75% of workers consider benefits the most crucial aspect in their decision to apply for a job.

99. Additionally, 59% of workers believe the commute time is crucial to any job application.

100. Regarding extra benefits, 42% of employees consider offering half-day Fridays a great way to attract potential candidates.

101. Award trips (mentioned by 21% of respondents) and on-site fitness facilities are among the top features most likely to attract prospects.

102. 78% of employees said they would stay with their job longer if they could envision a clear career path within the existing business.

103. In 2020, 69% of employees were likely to remain with an organization for three years if they had a positive onboarding experience.

104. In 2022, 87% of HR leaders considered improving retention a critical or high priority.

105. In 2023, 35% of workers will leave their jobs annually to seek other employment opportunities.

Workforce Turnover

106. In 2017, the healthcare (17%), semiconductors (15%), and software (22%) industries had the highest average turnover rates.

107. It was expected that 66% of millennials would leave their company in 2020.

108. In 2017, 28% of new hires left their jobs within the first six months.

109. In 2018, individuals with a negative onboarding experience were twice as likely to leave the organization.

110. In 2018, 84% of workers said they might leave their jobs for an opportunity at a well-known company.

111. The top 10 tech companies have an average onboarding duration of one to two years.

112. In 2018, 27% voluntarily quit their jobs.

113. Insufficient perks or compensation led 15% of workers to leave their previous jobs.

114. According to the US Bureau of Labor Statistics, approximately 3 million Americans voluntarily leave their jobs every month.

115. In 2019, over 27% of workers chose to resign from their jobs.

116. Also, in 2019, 42 million American workers opted to leave their jobs for better opportunities.

117. The primary reasons for resignation among Americans are career advancement (20%), work-life balance (12%), manager behavior (12%), well-being (10%), and relocation (9%).

118. Businesses with remote work options experience a 25% lower turnover rate than those without.

Effective onboarding procedures lead to increased new hire productivity, skill gap fulfillment by HR specialists, and accelerated business growth to achieve growth targets.

Vital Onboarding Strategy

According to HR experts, remote onboarding will take longer than traditional methods. Adapting to changing workplace demands during and after the pandemic is essential. Properly onboarding employees is time- and cost-intensive, and improving it is crucial for better outcomes. Here are some vital onboarding statistics:

119. Employee onboarding lays the groundwork for high job satisfaction, positive experiences, and high-caliber work.

120. Technology is being used more frequently by recruiters in their employment processes.

121. Successful onboarding demands substantial resource allocation.

122. Onboarding significantly impacts staff engagement.

123. Effective onboarding boosts productivity and the new hire retention of companies.

Leveraging critical onboarding data is vital for organizations. Effective onboarding enhances the company’s success by focusing on training and development. Pairing it with advanced HR management software provides optimal results.

Conclusion

Onboarding is so much more than just paperwork and logistics these days. It’s the crucial first step in creating an engaged, thriving workforce. The statistics clearly show that a solid onboarding program delivers immense value. It’s an investment that pays off in everything from higher retention to improved productivity.

In today’s business landscape, you simply can’t afford to just throw new hires into the deep end. The data makes an ironclad case for structuring a thoughtful, seamless onboarding journey. When done right, it sets people up for success from day one. They feel welcomed and equipped with the tools and knowledge to hit the ground running.

On the flip side, a disjointed onboarding experience is a missed opportunity. It can leave people feeling disconnected and frustrated from the start. The numbers reflect how heavily this impacts retention and performance.

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