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  • 115 Vital Onboarding Statistics: 2019 Market Share Analysis & Data

115 Vital Onboarding Statistics: 2019 Market Share Analysis & Data

Category: B2B News

Onboarding is crucial in winning the loyalty of new hires. If done improperly, it could have devastating effects on the organization. Quality onboarding programs typically result in enhanced productivity, engagement, and retention. These vital onboarding statistics will show just that.

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.

onboarding statistics main web

1. 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

  • 53% of HR professionals report 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%). (HCI/Kronos)
  • 55% of businesses say they don’t measure the effectiveness of onboarding programs. (Kronos)
  • Organizations with effective onboarding have 33% more employees feeling engaged versus those with ineffective onboarding. (BambooHR)
  • An onboarding program’s key components (3Ps) are people, performance, and paperwork. (HCI/Kronos)
  • 30% of organizations have passive onboarding practices. (SHRM)
  • HR managers say that their biggest onboarding challenge is its inconsistent use within the company (44%). The next top challenge is conflicting priorities (39%). (HCI)
  • 87% of businesses find assigning a mentor or a buddy during the onboarding process as very effective. (HCI)
  • Employees with good onboarding experience are 18X more likely to feel highly committed to their companies. (BambooHR)

Onboarding Issues

  • 76% of HR executives think that their organizations underutilize employee onboarding practices. (Kronos)
  • 36% of HR professionals cite the lack of technology as the reason for their inability to automate and organize onboarding programs. (Kronos)
  • After onboarding, 20% of new hires usually don’t recommend a company to a friend or relative. (Digitate)
  • 40% of new hires say that HR tends to respond very late about their job-related queries. (Digitate)
  • 10% of businesses have not upgraded their employee onboarding process in recent years. (Urbanbound)
  • 37% of employers provide around month-long onboarding programs. (Clickboarding)
  • 22% of organizations don’t have any formal onboarding program. (Harvard Business Review)
  • 58% of organizations say their onboarding programs only focus on processes and paperwork. (HCI)

Onboarding Best Practices

  • New hires must complete an average of 54 onboarding activities. (Sapling)
  • Having workplace friends increases the possibility of job engagement. (Gallup)
  • 72% of employees say one-on-one time with their direct manager is a very crucial part of onboarding. (Enboarder)
  • 33% of high-performance onboarding programs integrate the social network into their onboarding programs. (Glassdoor)
  • World-class companies are 53% more likely to provide pre-boarding activities. (Enboarder)
  • 38% of companies have an online onboarding platform and larger companies are more likely to utilize technology solutions. (HCI)
  • The effect of disengagement is the same for highly-talented employees and low-talent ones. (Gallup)

Top Objectives of Onboarding Programs

New Hire Momentum: Driving the Onboarding Experience 2018 study

Integrate employees into the corporate culture

%

Complete compliance requirements and related registrations

%

Create new hire buy-in with organizational business strategy etc.

%

Reduce time to proficiency

%

Clarify responsibilities of roles

%

Source: HCI and Kronos

Designed by

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 software to ensure that your onboarding and related HR programs are optimized.

2. Hiring and Onboarding Statistics

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

Hiring Statistics

  • The key success metrics for recruiters are the quality of hire (31%), retention rate (23%), and time-to-hire (21%). (Jobvite)
  • 63% of U.S. employers mass hired for permanent employees in the 2nd half of 2018. (CareerBuilder)
  • There was a record high of 6.6 million job openings from 50% of U.S. employers in early 2018. (Washington Post/US Dept. of Labor)
  • By early 2019, 45% of employers will increase starting salaries for new job offers. (CNBC)
  • Many employers offer employee discounts (31%), remote work arrangements (25%), and extra paid time off (22%). (CareerBuilder)
  • Top investments for growing an employer brand are social media (47%), and company career website (21%). (Jobvite)
  • 55 million people–or 35%+ of the U.S. workforce–are gig workers. By 2020, this number will increase to 43%. (Forbes/BLS)
  • The most-used channel for recruitment efforts is LinkedIn (77%). Facebook (63%) is in second place. (Jobvite)
  • 25% of recruiters are using Instagram in their recruitment activities. (Jobvite)
  • In the next 10 years, tech jobs will continue to grow, including software developers 30%, statisticians (33%), and mathematicians (29%). (US BLS)
  • By 2020, Millennials will compose 50% of the entire U.S. workforce. (MRI Network)

Hiring Issues

  • 74% of recruiters predict that hiring will be more challenging in the years to come. (JobVite)
  • Employer response time is what 69% of candidates would most like to see improved. (CareerArc)
  • 72.8% of employers are having a difficult time finding skilled candidates. 45% of employers are concerned about finding employees with the necessary talents. (ManpowerGroup)
  • A low skilled worker supply compels 56% of U.S. firms to offer signing bonuses to new hires. (Gmac)
  • 60% of recruiters cite implicit bias as a pressing problem in the U.S. workforce. (CareersInternational)
  • 80% of job applicants would not consider job openings from firms with poor communication practices. (Workplace Trends)
  • 60% of job seekers don’t file complicated job application forms. (SHRM)
  • Unfilled positions will cost a company at $1,400-$2,300 for experienced or highly skilled roles. (Ropella)

Candidate Experience

  • 75% of recruiters find Glassdoor reviews to have some value to their hiring activities. (Jobvite)
  • 83% of job seekers report that a negative interview can change their mind about a company they used to like. (LinkedIn)
  • 72% of hiring managers say they provide clear job descriptions. (HR Dive)
  • 85% of the 13,000 job seekers worldwide say the top driver of candidate satisfaction is constant communication across the recruitment cycle. (Allegis Group)
  • 87% of job seekers say a positive interview experience can improve their view about a company. (LinkedIn)
  • Prior experience (55%) and conversation skills (49%) most likely can influence hiring decisions. (Jobvite)
  • Effective onboarding experience improves new hire quality by 70%. (Glassdoor)

Hiring Diversity & Inclusion

  • 67% of candidates want to join a diverse team. (Glassdoor)
  • The top 25% of companies that observe racial and ethnic diversity enhances their earning possibilities by 35%. (EY)
  • Diverse firms are 70% more likely to communicate that they have captured a new market. (Harvard Business Review)
  • The top 25% of companies that observe gender diversity increasing their earning possibilities by 15%. (EY)
  • 69% of executives consider diversity and inclusion as important issues. (Deloitte)
  • 78% of recruiters and hiring managers say that diversity is the main trend influencing their hiring practices. (CareersInternational)
  • Inclusive organizations have a 2.3x higher cash flow for every employee over a period of three years. (Josh Bersin)
  • Only 30% of recruiters have particular objectives and policies that address racial and gender diversity hiring. (CareersInternational)
  • Only 25% of businesses set gender diversity targets. (LinkedIn)
  • 37% of recruiters are planning to actively engage with more diverse candidates. (FitSmallBusiness)
  • 57% of recruiters say that focus on attracting diverse candidates. (EmpxTrack)
  • Gender workforce diversification could allow a country to earn over $12 trillion or 11% of the GDP. (McKinsey)

Success Metrics for Recruiters

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 a robust applicant tracking solution.

3. 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. (AppsRunTheWorld)
  • The average employer spends around $4,000 and 24 days to hire a new employee. (Glassdoor)
  • In 2018, U.S. employers have lost $617 billion to employee turnover. (Work Institute)
  • The top 10 vendors in the onboarding market share hold 58.7% of the worldwide total market. (AppsRunTheWorld)
  • On average, replacing an employee costs from 16%-20% of that employee’s salary. (Contract Recruiter)
  • 30% of employers have increased their onboarding budget in 2018. (HCI/Kronos)
  • Companies spend an average of US$3,000 to onboard every new hire. (LinkedIn)
  • Companies poor exit interviews 80% of the time. (Work Institute)
  • On average, companies spend US$3,000 to $18,000 to fill a position. (SHRM)
  • New hires are commonly low in productivity. They cause companies to lose from 1% to 2.5% of revenues. (Urbanbound)
  • In 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)

Non-Monetary Factors

  • 89% of workers at companies that support well-being efforts are more likely to recommend their company as a good place to work. (APA)
  • Organizations perceive effective onboarding as improving retention rates (52%) and time to productivity (60%). (SHRM)
  • 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 (UrbanBound)
  • 70% of business owners have enhanced their physical environments to encourage healthy behaviors, including introducing healthy foods to cafeteria menus, walking pathways, and campus bike-sharing programs. (Willis Towers Watson)
  • 61% of businesses agree that they’ve made healthier lifestyle choices because of their company’s wellness program. (Aflac)
  • 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. (Fidelity)
  • 78% of employers say employee well-being is a critical part of their business plans. (Virgin Pulse)

Costs Associated with Voluntary Employee Turnover

For U.S. Business Organizations

in US$ billions

2010

2019

2023 (est.)

Source: Work Institute 2019

Designed by

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.

4. Employee Engagement and Productivity Statistics

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

Engagement Benefits

  • Onboarding programs have been shown to increase retention by 25% and even improve employee performance by up to 11% (ClearCompany)
  • 56% of employees say additional paid time off would make them more loyal to an organization. (Fierce)
  • 25% of companies admitted that their onboarding program does not include any form of training. (ClearCompany)
  • 54% of companies with onboarding programs reported higher employee engagement. (SHRM)
  • 77% of employees who had a formal onboarding process hit their first performance goals. (Urbanbound)
  • 89% of HR leaders surveyed agree that ongoing peer feedback and check-ins have a positive impact on their organizations. (SHRM)
  • 92% of employees believe showing empathy is an important way to advance employee retention. (BusinesSolver)
  • Of those who don’t hit their first performance goals, 50% did not have a formal onboarding process. (Urbanbound)

On-boarding Engagement Issues

  • The U.S. has 62% engaged workers. (Qualtrics)
  • There are 56% of workers in Australia and 42% in Hong Kong. (Qualtrics)
  • Businesses spend US$37 billion to maintain unproductive workers annually. (Urbanbound)

Top Benefits of Onboarding Programs

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 an effective employee monitoring software will help a lot.

5. 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 with onboarding.

Traditional Onboarding

  • Organizations with a strong onboarding process improve new hire retention by 82% and productivity by over 70%. (Glassdoor)
  • The top reasons given by employees for leaving their jobs include lack of career development (22%), lack of support with work-life balance (12%), their manager’s behavior (11%), unsatisfactory compensation and benefits (9%), and poor well-being (9%). (Work Institute)
  • 83% of employers believe attracting and retaining talent is a growing hiring challenge. (Allegis Group)
  • 47% of companies say their top metric for onboarding success is measuring the one-year turnover rate of new hires. (HCI)
  • 78% of employees said they would remain longer with their employer if they saw a career path within the current organization. (Mercer)
  • 35% of employees will leave their jobs each year by 2023 to go to work somewhere else. (Work Institute)
  • People with poor onboarding experience are twice more likely to exit the company. (Digitate, 2018)
  • 69% of employees are more likely to stay with a company for three years if they experienced great onboarding. (SHRM)
  • Among HR professionals who claim difficulty in retaining older workers, 47% cite work location inflexibility as the biggest challenge, followed by career inflexibility (45%) and work hours inflexibility (44%). (SHRM)
  • 87% of HR leaders consider improved retention a critical or high priority for the next five years. (Kronos)

Employee Turnover

  • Changing roles make 93% of millennials to quit their jobs. (Gallup)
  • In 2017, the highest average turnover rates per industry were in software (22%),  semiconductor (15%), and healthcare (17%). (Radford)
  • Around 3 million Americans leave their jobs every month voluntarily. (US BLS)
  • 66% of millennials expect to leave their organization by 2020. (Glassdoor)
  • Millennial turnover costs the U.S. economy $30.5 billion a year. (Gallup)
  • 28% of new hires leave just six months into a new job. (SHRM)
  • 84% of employees might leave their jobs if offered by a company that has an excellent reputation. (Enboarder)
  • 70% of high-retention-risk employees will leave their companies to advance their careers. (Willis Towers Watson)
  • Even among the top 10 tech firms, the average tenure is between 1 to 2 years only. (Paysa)
  • Within their first 1.5 months on the job, 20% of new hires will leave a new opportunity. (HCI, 2016)
  • 27% of employees voluntarily left their jobs in 2018. (Work Institute)
  • Companies that support remote work have 25% lower employee turnover versus companies that don’t. (OwlLabs)

Top Reasons Why Employees Leave Their Companies

2019 Retention Report: Trends, Reasons, & A Call to Action study

Lack of career development

%

Lack of support with work-life balance

%

manager’s behavior

%

Unsatisfactory compensation and benefits

%

Poor well-being

%

Source: Work Institute

Designed by

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

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 to integrate them with the best HR management software for good measure.

By Nestor Gilbert

Senior writer for FinancesOnline. If he is not writing about the booming SaaS and B2B industry, with special focus on developments in CRM and business intelligence software spaces, he is editing manuscripts for aspiring and veteran authors. He has compiled years of experience editing book titles and writing for popular marketing and technical publications.

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