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122 Vital Onboarding Statistics: 2021/2022 Market Share Analysis & Data

Onboarding is crucial in winning the loyalty of new hires. But if done improperly, it could have devastating effects on an organization. And this challenge was made more difficult due to the numerous limitations brought about by COVID-19.

Prior to the pandemic, quality applicant tracking software and onboarding programs have been proven to result in enhanced productivity, engagement, and retention. Together with robust technology tools, businesses are searching for innovative means to onboard employees remotely.

We’ve gathered over a hundred onboarding statistics and other related data for you. Knowing these HR data will prove to be vital in your business.

key onboarding statistics

1. COVID-19 & Onboarding Statistics

The pandemic has created new and numerous challenges when it comes to hiring and onboarding new employees. Here are some important statistics on how COVID-19 has affected onboarding in particular and hiring in general:

Impact on Onboarding

  • One study found that employers’ biggest recruitment challenges are remote hiring, training, and onboarding new hires amid the global health crisis. (Workable Survey, 2020)
  • 37.4 of recruiters say that their most important concerns during the pandemic are the challenges to onboard and train remotely.  (Workable Survey, 2020)
  • Likewise, for 33.1% of recruiters, the most crucial is hiring remotely. (Workable Survey, 2020)
  • Another study found that 10 or more new employees were hired by 46% of companies. This suggests that employers must be ready to still accept new staff per hiring interval during the pandemic. (The Manifest, 2020)
  • The other key issues that emerged due to COVID-19 include internal financial distress among companies (30.6%) and job candidates’ uncertainty on their employment security (31.7%). (Workable Survey, 2020)
  • Looking forward, 21.6% of managers said that onboarding of new employees belongs to their three biggest concerns once the pandemic is through. (Workable Survey, 2020)
  • Moreover, in a post-COVID-19 environment, managers expect that some of their biggest challenges will likely include onboarding, candidate engagement, and appraisal. (Workable Survey, 2020)

Effect on Hiring and Retention

  • Very few businesses (3%) anticipate that over 1 out of three of their employees will resign by 2021. This indicates that using structured onboarding helps minimize turnover and facilitates successful collaboration even among employees of varying levels of experience and skills. (The Manifest, 2020)
  • Likewise, 61% of employers anticipate new hires to work with them for at least two years. To maximize their stay, the onboarding process must be conducted for several months. (The Manifest, 2020)
  • Further, 37% of employers attribute poor work-life balance as one of the main reasons why employees leave their company. This indicates that proper onboarding should be given to each new hire to ensure that everyone in the company will have healthy work practices. (The Manifest, 2020)
  • In a COVID-19 environment, some of the most sought-after traits that recruiters look for in new hires are resilience and adaptability (67.4%) and self-starter/self-motivated (54.2%). (Workable Survey, 2020)
  • Compelled to remote hire due to the pandemic, 51.7% of managers say that their biggest challenge was candidate engagement. Others say new hire onboarding (49.7%) and evaluation (42.4%). (Workable Survey, 2020)
  • Still, around two of three employers (68%) report that they were able to successfully shift to remote recruitment and onboarding simply because they already have the necessary technology and protocols in place even before COVID-19 emerged. (Workable Survey, 2020)

To facilitate a seamless transition to remote onboarding, it is best to use video conferencing software along with observing important hiring best practices. This technology enables employees, both old and new, to pay attention to facial expressions and to make eye contact with others, both of which are essential to healthy interpersonal communication.

Source: Workable Survey (2020)

2. Employee Onboarding Statistics

Improper onboarding commonly leads to the premature departure of new hires. To prevent this, businesses must focus on how to continuously improve converting new hires into long-term employees. Here are the key onboarding data on the value of onboarding:

Importance of Onboarding

  • 93% of employers were unanimous in accepting that a good onboarding experience is crucial in affecting the decision of a new employee whether he/she will stay with the company. (CareerBuilder & SilkRoad, 2019). 
  • Among HR professionals, 53% indicated that enhanced onboarding boosts employee engagement. (SilkRoad)
  • The top objective of onboarding programs is to integrate employees into the corporate culture (62%). Next is to complete compliance requirements (at 57%). (Kronos/HCI)
  • An onboarding program’s key components (3Ps) are people, performance, and paperwork. (Kronos/HCI)
  • Organizations with effective onboarding have 33% more employees feeling engaged versus those with ineffective onboarding. (BambooHR, 2018)
  • 87% of businesses find assigning a mentor or a buddy during the onboarding process very effective. (BambooHR/TalentLyft, 2019)
  • Employees with good onboarding experience are 18X more likely to feel highly committed to their companies. (BambooHR, 2018)

Onboarding Issues

  • A 2017 study found that only 12% of employees are convinced that their companies have good onboarding programs for new hires. (Gallup)
  • This indicates that 88% of employees think that there is too much to improve in the onboarding programs of their companies. (Gallup)
  • In 2018, 76% of HR executives thought that their organizations underutilize employee onboarding practices. (Businesswire, 2018)
  • Likewise, 36% of HR professionals cited the lack of technology as the reason for their inability to automate and organize onboarding programs. (Businesswire, 2018)
  • After onboarding, 20% of new hires usually don’t recommend a company to a friend or relative. (Digitate, 2018)
  • 40% of new hires also say that HR tends to respond very late about their job-related queries. (Digitate, 2018)
  • Despite the known shortcomings, 10% of businesses have not upgraded their employee onboarding process in recent years. (Urban Bound, 2018)
  • Notwithstanding the known efficiency of many HR metrics, 55% of businesses say they don’t measure the effectiveness of onboarding programs. (Businesswire, 2018)
  • Poor onboarding has adverse effects on employees that around 10% of employees resigned from a company because of their inadequate onboarding experience. (CareerBuilder, 2019)
  • In 2020, around 1 in 3 global executives cited that the quality of their onboarding was below the standard. (ClickBoarding, 2020)

Onboarding Best Practices

  • For HR experts, new hires must complete an average of 54 onboarding activities. (SaplingHR, 2021)
  • Typically, a new hire will be given 41 administrative tasks and 3 documents to complete. In addition, 10 outcomes must also be achieved. (SaplingHR, 2021)
  • With numerous onboarding expectations to address, it’s no wonder why around 56% of new hires prefer having a mentor or buddy to help them through. (ClickBoarding, 2020)
  • In fact, new employees tend to take around 8 months to 1 year before they can be as efficient as their regular co-workers. (ClickBoarding, 2020)
  • This why around 1 in 3 (or 37%) of dynamic businesses offer onboarding programs that last for at least a month. (ClickBoarding, 2020)
  • In fact, world-class companies are 53% more likely to provide pre-boarding activities. (Enboarder, 2018)
  • For 72% of employees, they say one-on-one time with their direct manager is a very crucial part of onboarding. (Enboarder, 2018)
  • The effect of disengagement is the same for highly-talented employees and low-talent ones. (Gallup, 2018)

Studies and HR experts underscore the value of having friends and healthy relationships in the workplace. This proves how valuable relationships matter. It’s suggested that you deploy the best HR management tools to ensure that your onboarding and related HR programs are optimized.

3. Hiring and Onboarding Statistics

The hope and enthusiasm that every new employee brings are constant in any industry, location or business size. Onboarding reports agree on the value of efficient hiring practices to employment success.

Hiring Statistics

  • In early 2018, there was a record high of 6.6 million job openings from 50% of US employers in early 2018. (Washington Post, 2018)
  • By the 2nd half of 2018, 63% of US employers mass hired permanent employees. (CareerBuilder, 2018)
  • The key success metrics for recruiters are the quality of hire (31%), retention rate (23%), and time-to-hire (21%). (Jobvite, 2018)
  • To better attract applicants, many employers offer employee discounts (31%), remote work arrangements (25%), and extra paid time off (22%). (CareerBuilder, 2018)
  • Going back to 2018, the top investments for growing an employer brand are social media (47%), and company career website (21%). (Jobvite, 2018)
  • Also for that year, the most-used channel for recruitment efforts is LinkedIn (77%). Facebook (63%) is in second place. (Jobvite, 2018)
  • Likewise, 25% of recruiters are using Instagram in their recruitment activities. (Jobvite, 2018)
  • In the next 10 years, tech jobs will continue to grow, including software developers (30%), statisticians (33%), and mathematicians (29%). (BLS, 2020)
  • In early 2019, 45% of employers were expected to have increased starting salaries for new job offers. (CNBC, 2018)
  • In 2020, millennials were predicted to compose 50% of the entire US workforce. (MRI Network, 2020)

Hiring Issues

  • 29% of employees say that their company was able to properly onboard them, which they think is essential in helping them be better prepared to start their new jobs. (CareerBuilder & Silkroad, 2019)
  • Similarly, 63% of candidates are not contented with how most employers communicate with them. (Talentegy, 2019)
  • In 2017, employer response time was what 69% of candidates would most like to see improved. (Career Arc)
  • In 2018, 74% of recruiters predicted that hiring will be more challenging in the years to come. (Jobvite, 2018)
  • In the same year, 72.8% of employers were having a difficult time finding skilled candidates. 45% of employers were concerned about finding employees with the necessary talents. (Manpower Group, 2018)
  • A low-skilled worker supply had compelled 56% of US firms to offer signing bonuses to new hires. (GMAC, 2018)
  • Meanwhile, 60% of recruiters cited implicit bias as a pressing problem in the US workforce. (Careers International, 2018)
  • Unfilled positions will cost a company $1,400-$2,300 for experienced or highly skilled roles. (Ropella, 2018)

Candidate Experience

  • Only around 1 in 3 new hires are satisfied with the learning and training programs that their current employers offer. (CareerBuilder, 2019)
  • Likewise, around 32% of new hires are contented with career growth opportunities offered by their companies. (CareerBuilder, 2019)
  • Further, around half of employees cite the lack of training and development opportunities in their current companies that will enable them to advance in their careers. (CareerBuilder, 2019)
  • As such, 73% of employees who do not have training and development opportunities outside their work schedules say that they would likely join once such programs are offered. (CareerBuilder, 2019)
  • Meanwhile, 75% of recruiters find Glassdoor reviews to have some value to their hiring activities. (Jobvite, 2018)
  • In addition, prior experience (55%) and conversation skills (49%) most likely can influence hiring decisions. (Jobvite, 2018)
  • Moreover, an effective onboarding experience had been found to improve new hire quality by 70%. (Glassdoor)

Hiring Diversity & Inclusion

  • According to Glassdoor, 67% of candidates want to join a diverse team. (Glassdoor)
  • The same perception is true among employers as 69% of executives consider diversity and inclusion as important issues. (Deloitte)
  • In fact, 78% of recruiters and hiring managers say that diversity is the main trend influencing their hiring practices. (Careers International, 2018)
  • However, only 30% of recruiters have particular objectives and policies that address racial and gender diversity hiring. (Careers International, 2018)
  • In 2017, only 25% of businesses set gender diversity targets. (LinkedIn)
  • Nonetheless, 37% of recruiters were planning to actively engage with more diverse candidates in the same year. (Fit Small Business)
  • 57% of recruiters also say that they focus on attracting diverse candidates. (EMPX Track, 2018)

Even the best-in-class onboarding program will be useless if a company cannot attract high-quality new hires. An effective way to enhance your recruitment process is by deploying applicant tracking software.

Top Applicant Tracking Software

  1. Bamboo HR. A top HR and applicant tracking applications with features for applications management, employee lifecycle module, and report generation. Learn more about its capabilities in our Bamboo HR review here.
  2. SmartRecruiters. An end-to-end HR management system that covers applicant tracking, onboarding, job posting, and employee referrals. See if this is the right investment for you in this SmartRecruiters review.
  3. Workday. An enterprise-class HR solution for global businesses that comes with tools for applicant tracking, time tracking, succession planning, reports, and analytics. Read more about it in our Workday review.
  4. Submittable. An application management solution with features for review tracking, team messaging, multi-channel communication, and response management. Check out our Submittable review for more details.
  5. Greenhouse. A next-generation recruitment software that supports data quality auditing, video-based training, pipeline management, and automated social media posting. View this Greenhouse review to learn more.

4. Business Effect of Onboarding Statistics

Poor onboarding causes many adverse outcomes. One is financial losses. Read more about the financial and other business aspects related to onboarding:

Financial Aspects

  • The global onboarding market size will reach $793 million by 2022. (Apps Run The World, 2019)
  • The average employer spends around $4,000 and 24 days to hire a new employee. (Glassdoor, 2019)
  • In 2018, US employers have lost $617 billion to employee turnover. (Work Institute, 2019)
  • In 2019, the top 10 vendors in the onboarding market share held 58.7% of the worldwide total market. (Apps Run The World, 2019)
  • For the same year, companies spent an average of $3,000 to onboard every new hire. (LinkedIn, 2019)
  • Likewise, companies were found to conduct poor exit interviews 80% of the time. (Work Institute, 2019)
  • New hires are usually low in productivity, which is why companies likely lose from 1% to 2.5% in revenues. (Urban Bound, 2018)
  • But with an effective onboarding program, new hire performance tends to improve by 11%. (ClickBoarding, 2020)
  • In 2020, voluntary turnover costed organizations to lose over $630 billion.  (Work Institute, 2020)
  • For the next 3-5 years, 51% of employers say using health and wellness benefits to maintain employee loyalty and retain talent will become even more important. (MetLife, 2020)

Non-Monetary Factors

  • A 2017 study found that 87% of employees believe that their companies will support them in their work-life balance needs. (Glassdoor)
  • Manager satisfaction increases by 20% when their employees have formal onboarding training. (Urban Bound, 2018)
  • And because of their company’s wellness program, 61% of businesses agree that they’ve made healthier lifestyle choices. (Aflac, 2018)
  • 84% of companies say they now have financial security programs, such as access to budgeting resources, debt management tools, or student loan counseling as part of their well-being strategies. (Aflac, 2018)
  • Likewise, employee well-being is a critical part of the business plans of 78% of employers. (Virgin Pulse)
  • Meanwhile, it was found that companies experienced 16% better retention rates for new hires when they automated onboarding tasks. UrbanBound, 2018)
  • Likewise, automating onboarding tasks led to an 18% improved achievement of the initial performance of new hires. (UrbanBound, 2018)

Source: Work Institute 2019

A business should measure its core HR functions to know its efficiency. If you want to excel in your employee evaluation, it’s good to use some of the best performance appraisal software in the market today.

5. Employee Engagement and Productivity Statistics

There’s considerable evidence on the connection between higher employee engagement and high-quality onboarding (Enboarder, 2020). Here are some interesting statistics on their deep connection:

Engagement Benefits

  • Onboarding programs can improve employee retention by 25%. In addition, well-designed onboarding plans can boost new hire performance by 11%. (ClickBoarding, 2020)
  • In an earlier study, 56% of employees said that additional paid time off would make them more loyal to an organization. (Fierce Inc)
  • Likewise, 54% of companies with onboarding programs reported higher employee engagement. (SHRM)
  • A 2018 study found that 77% of employees who had a formal onboarding process were able to reach their first performance goals. (Urban Bound, 2018)
  • Of those who don’t hit their first performance goals, 50% did not have a formal onboarding process. (Urban Bound, 2018)
  • 89% of HR leaders surveyed by SHRM agreed that ongoing peer feedback and check-ins have a positive impact on their organizations. (SHRM/Globoforce, 2018)
  • 92% of employees believed showing empathy is an important way to advance employee retention. (Business Solver, 2020)
  • Employees who participate in a structured onboarding program are 69% more likely to stay with an organization for 3 years. (ClickBoarding, 2020)
  • 76% of new hires feel socialization is most important. (ClickBoarding, 2020)

On-boarding Engagement Issues

  • A recent Qualtrics study found that in the US, there are 62% engaged workers overall. (Qualtrics, 2020)
  • For other countries, the same study found that Australia has 56% of workers and 42% in Hong Kong are disengaged. (Qualtrics, 2020)
  • Meanwhile, businesses spend $37 billion to maintain unproductive workers annually. (Urban Bound, 2018)

Onboarding lays down the groundwork for the entire employee experience. A lackluster onboarding experience can result in poor performance and employee disengagement. An employee’s onboarding experience can even affect the rest of his/her time with your company. To better keep track of how they spend their time, using employee monitoring software will help a lot.

6. Workforce Retention Statistics

Onboarding has a tremendous role to play in employee retention. Does your company have a good onboarding program? These retention stats will show its relation to onboarding.

Traditional Onboarding

  • Aside from salary, 75% of employees say that the important factor that they consider when applying for work is benefits. (CareerBuilder, 2019)
  • In addition, 59% of workers think that commute time is another major aspect of any job application. (CareerBuilder, 2019)
  • When it comes to additional perks, 42% of employees think that half-day Fridays is a great way to attract any job applicant. (CareerBuilder, 2019)
  • The other most-cited aspects that can likely attract candidates include award trips (21%) and on-site fitness centers.  (CareerBuilder, 2019)
  • 78% of employees said they would remain longer with their employer if they saw a career path within the current organization. (Mercer, 2018)
  • 69% of employees are more likely to stay with a company for three years if they experienced great onboarding. (Robert Walters, 2020)
  • Among HR leaders, 87% considered improved retention a critical or high priority through 2022. (Kronos)
  • By 2023, 35% of employees will leave their jobs each year to go to work somewhere else. (Work Institute, 2019)

Employee Turnover

  • In 2017, the highest average turnover rates per industry were in software (22%), semiconductor (15%), and healthcare (17%). (AON)
  • 66% of millennials were expected to have left their organization in 2020. (Glassdoor)
  • In 2017, 28% of new hires left just six months into a new job. (SHRM)
  • In 2018, people with poor onboarding experience were twice more likely to exit the company. (Digitate, 2018)
  • 84% of employees also said that they might leave their jobs if offered by a company that has an excellent reputation. (Enboarder, 2018)
  • Even among the top 10 tech firms, the average tenure is between 1 to 2 years only. (Paysa, n.d.)
  • Also in 2018, 27% of employees voluntarily left their jobs. (Work Institute, 2019)
  • 15% of employees cited the lack of benefits or meager compensation package as among the biggest reasons why they resigned from their previous job. (CareerBuilder, 2019)
  • According to the US Bureau of Labor Statistics, approximately 3 million Americans voluntarily resign from their jobs on a monthly basis. (BLS, 2020)
  • In 2019, over 27% resigned from their jobs. (Work Institute, 2020)
  • For the same year, 42 million American workers opted to leave their jobs for better opportunities. (Work Institute, 2020)
  • The top reasons why Americans resigned from their jobs are career development (20%), work-life balance (12%), manager’s behavior (12%), well-being (10), and relocation (9%). (Work Institute, 2020)
  • Businesses that offer work-from-home arrangements for their employees tend to have 25% lesser turnover compared to those that don’t. (Owl Labs, 2020)

Source: Work Institutes (2020)

It is likely that they don’t understand how solid onboarding practices allow. New employees will become more productive sooner. HR professionals will address their skills gaps. Organizations will scale and achieve growth targets.

Plan Your Onboarding Strategy Better

HR experts suggest that since most if not all onboarding activities would indefinitely be done remotely, this vital HR practice will likely take longer compared to traditional onboarding. Nonetheless, it is clear that during and after the coronavirus pandemic, every organizational member must work at his or her highest capacity to ensure the evolving workplace challenges are met.

Properly onboarding a new employee is really expensive and time-consuming. If your onboarding is poor in quality, results could be more devastating. Here are some of the highlights of this collection of vital onboarding statistics:

  • Onboarding sets the foundation for employee high job satisfaction, good experience, and quality work.
  • Recruiters are increasingly using technology in their hiring strategies.
  • Good onboarding practices entail substantial resource allocation.
  • Onboarding affects employee engagement.
  • Strong onboarding practices can help businesses enhance new hire retention and productivity.

Knowing important onboarding statistics like these can be empowering to any employer. Efficient onboarding programs that focus on employee education and career growth bring profits to any business. To ensure that you make the most of your onboarding practices, it is highly suggested you integrate them with top-of-the-line HR management software for good measure.

 

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Nestor Gilbert

By Nestor Gilbert

Nestor Gilbert is a senior B2B and SaaS analyst and a core contributor at FinancesOnline for over 5 years. With his experience in software development and extensive knowledge of SaaS management, he writes mostly about emerging B2B technologies and their impact on the current business landscape. However, he also provides in-depth reviews on a wide range of software solutions to help businesses find suitable options for them. Through his work, he aims to help companies develop a more tech-forward approach to their operations and overcome their SaaS-related challenges.

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