onboarding

25 Employee onboarding statistics HR managers need to know in 2024

Appical Team
Khrystyna Fedoruk
November 30, 2023
5
min read
Table of Contents
Without a doubt, the onboarding process plays a crucial role in any company's HR strategy. However, it can be challenging to fully grasp its importance without quantifying its impact. While it's not solely about money (although there are financial implications), it is crucial to evaluate how a well-designed onboarding program can positively contribute to your company's success. Dive into this blog to learn about 25 onboarding statistics that will help you change your perspective on the importance of a well-designed onboarding program.

Why is onboarding important for your company?

Onboarding plays an important role in the seamless integration of new hires into an organization. However, not all companies give it the attention it deserves or know how to execute it effectively. Surprisingly, recent statistics indicate that only 52% of employees feel satisfied with their onboarding experience (Paycheck). 

The importance of onboarding cannot be underestimated, as a staggering 64% of employees are inclined to leave a new job within their first year if their onboarding experience is negative (Hibob). It's concerning to note that 52% of employees are left feeling undertrained (Paycheck).

Even more alarming is the fact that among employees who are contemplating leaving their current employer, 74% describe their onboarding experience as boring, 66% as confusing, and 64% as a failure (Paycheck).

[.callout-small]More reasons to improve your onboarding process? See our e-book 'Surprising Onboarding Statistics' [.callout-small]

It takes approximately $4000 and 24 days to find and hire a replacement 

Research reveals that the average US employer spends approximately $4000 and 24 days to find and hire a replacement worker (Glassdoor). Moreover, estimates indicate that the cost of replacing a salaried employee can range from 6 to 9 months' worth of their salary (CentricHR).

On the positive side, organizations with a good onboarding process witness remarkable results. 79% of companies report that onboarding helps employees quickly adjust to company culture (Vlerick Talmundo), leading to a better experience for employees and employers. When a quality onboarding process is in place, there is an impressive 82% improvement in new hire retention and a significant increase in productivity by over 70% (Brandon Hall Group).

Furthermore, research shows that 69% of employees are more likely to stay with a company for three years if they have a positive onboarding experience (SHRM). 

Therefore, implementing an onboarding process can greatly improve companies’ retention rates.

However, it is important to notice that the workplace has been developing, especially since the shift to hybrid and remote ways of working. So, it's crucial to make adjustments to the processes.

Onboarding in the digital age

The dynamics of the workforce are undergoing a significant transformation, with 50% of employees embracing hybrid arrangements, 30% opting for remote work, and only 20% sticking to traditional on-site setups, according to (Gallup). This shift towards hybrid models is predicted to grow from 42% in 2021 to 81% by 2024 (At&t).

When it comes to onboarding, it appears that on-site and hybrid employees have a smoother experience compared to their remote counterparts (although the numbers for both groups are not ideal). Paycheck's research reveals that 36% of remote workers found the onboarding process confusing, slightly higher than the 32% of on-site employees who encountered the same challenges.

Interestingly, the data also highlights that remote workers (63%) are more likely to consider leaving their employers soon, in comparison to on-site employees (29%) (Paycheck). This suggests that a sense of belonging, which can be nurtured through effective onboarding, might be lacking for many remote workers making it easier for them to part ways with the company.

HR managers can save 14 hours per week by automating their processes 

In terms of technology implementation, a significant number of organizations (26.5%) currently lack the necessary technology in their onboarding programs. However, 68% of HR professionals are planning to integrate technology into their onboarding processes in the future (Vlerick Talmundo). By leveraging technology to enhance the onboarding experience, employee engagement can be improved, and HR managers can save 14 hours per week by automating their processes (CareerBuilder). 

Therefore, it is crucial to incorporate a range of tools to facilitate the transition. To begin with, web applications and platforms can significantly enhance employees' experience, enabling them to feel a sense of belonging regardless of their location. Additionally, companies can leverage the power of creative storytelling to boost engagement and a sense of pride, along with implementing a buddy system that fosters familiarity and support. 

An effective approach to streamline these processes is through the integration of artificial intelligence (AI).

Using AI in onboarding

As the corporate landscape evolves, the use of AI increases. Recent statistics reveal that 35% of companies worldwide have already embraced AI, while an additional 42% are actively exploring its vast potential (ExplodingTopics).

68% of organizations are already using AI in their hiring and onboarding processes (in the USA, according to LeenaAI). It is fascinating to note that half of the participants in this study have expressed their belief that an enhanced onboarding experience is a crucial factor that drives them to consider implementing Artificial Intelligence (AI) and automation. 

Furthermore, 41% of the respondents anticipate adopting an automated onboarding process within the next 6 to 12 months (LeenaAI). This statistic reflects the rapid pace at which organizations are recognizing the transformative power of AI in streamlining their onboarding procedures, making them more efficient, personalized, and user-friendly.

With AI revolutionizing the way businesses operate, there is no doubt that the corporate world is now embracing the potential of this technology to optimize various aspects of their operations. From enhancing the onboarding experience to automating repetitive tasks. 

[.callout-small]Here is how we use AI in onboarding. Check out the Appical AI page.[.callout-small]

However, AI is not the only way your onboarding can stand out for new hires.

Get creative: ways to make your onboarding program stand out

In today's competitive world, it is vital to captivate employees right from the start. However, with the abundance of onboarding programs, it can be challenging to surprise them and make a lasting impact. That's where creativity plays a vital role. Here are a few innovative ideas to consider:

1. Sustainability

According to GetSmarter, 56% of professionals are more inclined to stay in a company that has a solid sustainability agenda. Additionally, a study by Fast Company revealed that 30% of respondents have left a job in the past due to the absence of a sustainability plan. More than a third of employees admitted to going the extra mile in their roles because of their employer's dedication to sustainability. These statistics clearly highlight the importance of prioritizing sustainability initiatives during the onboarding process to attract and retain top talent.

[.callout-small] Read this blog for ideas on how to implement sustainability in your onboarding process.[.callout-small]

2. Virtual Reality (VR)

Another way to impress your employees is by incorporating Virtual Reality (VR) into your onboarding program. The number of organizations using virtual reality (VR) for onboarding has more than doubled from 5% in 2020 to 11% in 2021 (Continu). By incorporating VR, new hires can enjoy an immersive experience that includes virtual office tours and realistic job simulations. It also boosts confidence and reduces workplace stress ultimately leading to improved business outcomes. So why not leverage the power of VR to wow your employees right from day one? 

[.callout-small] Read this blog for ideas on how to implement VR in your onboarding process.[.callout-small]

To wrap it up, for a better onboarding experience, it's essential to keep up with the changing employment landscape and explore new methods of integrating new hires effectively.

[.callout-blue]For even more eye-opening insights on onboarding statistics, be sure to check out our e-book 'Surprising Onboarding Statistics'[.callout-blue]

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