Employee onboarding statistics gives us an overview as to how vital, employee onboarding process is to an organization’s success and growth. The benefits of a onboarding plan for new hire applies to not just the employee, but the manager and the company. Onboarding is a great opportunity for employers to connect with new employees. Onboarding is a defining moment when new employees decide to be aligned or become disinterested. To restrain the flow of new hires prematurely leaving the company, organizations have to be proactive on how they convert talented new hires into successful longer-term employees. Otherwise, they are wasting the time and resources they invest on hiring and training.
Onboarding sets the pace and tone to an employee’s stint in the organization. Hence, much care has to be taken, to handhold and ensure that new employees are assimilated into the organization with a well-oiled onboarding process. As companies grow bigger, it is essential to build a formal, structured and effective onboarding process.
The process of onboarding helps reduce the learning curve, teaching and equipping new employees with behaviours, skills, knowledge and tools that help to perform at a functional and social level. While great care is taken to source, screen and get the perfect fit for a role, the process of employee onboarding often goes in a rush. Teams, deadlines and targets push the employee to quickly get onboard, and often very little care is taken to initiate the employee into his role. The process of transition and initiation is either rushed, or done more by default than design. If the employee is left in the lurch, having to figure it out by himself, disengagement starts right there.
Here are some employee onboarding statistics and trends you don’t want to ignore
- What employees expect from an onboarding program
1. Outline of their performance goals, KPI’s(Key performance Indicators), KRA’s(Key responsibility areas) (70 percent)
2. Introduced to company culture and ethos (58 percent)
3. Assigned a mentor for on the job and role based training (52 percent)
4. Connect with reporting manager (68 percent)
5. Understand the activities to be done in the first week, month and year (56 percent)
6. Get to know team and other departments in the organization (48 percent)
- According to a notable survey, hiring and resource managers whose organizations provide a structured long term onboarding program say the rewards include:
1. Employees are more engaged (49 percent)
2. More employee confidence (46 percent)
3. Employees have greater trust in the organization (45 percent
4. Greater efficiencies (44 percent)
5. Higher productivity and performance (42 percent)
6. Higher morale (38 percent)
7. Lower employee turnover (31 percent)
8. Contributes to meeting revenue targets (21 percent)
- According to a survey submitted by MIT Sloan Management Review, in the United States more than 25 percent of the working population experience career transitions every year. This makes onboarding a subject of strategic importance.
- It is estimated that managers transition into new jobs or new roles on an average every 2 to 4 years with approximately 500,000 new managers moving into new roles or companies each year, in just Fortune 500 companies alone. Yet, the success ratio of senior hires from outside the company is 50%, half of them failing within 18 months into the new position.
- Over 30% of all new hires quit their jobs within the first six months. According to a study by the Corporate Executive Board nearly 4% of employees quit a new job after the first day. Nearly 20% of employee turnover happens in the first 30 days.
- Studies indicate that it can cost 6 to 9 month’s salary every time an employee is replaced. The costs and numbers involved in employee turnover makes sense only for managers and companies to look into the process of onboarding with more vigour. About 33% of new hires lookout for a new job within 6 months of joining. New hire cost averages around $65,000 and the learning curve to full productivity can take upto 5 months of full employment. It is estimated that even a $8/hour employee can cost around $3,500 in turnover, both direct and indirect.
- Over 50% of employees who went through a structured onboarding process are likely to stay with the company after 3 years.
- Organizations with a standard onboarding process experience 50 percent greater new-hire productivity.
- Over 20% of companies have no formal employee onboarding program. Only 35% of organizations extend their onboarding program beyond the first month.