We have already talked about how much a defined onboarding program is fundamental for the training of new hires. Let's look at some data and statistics.
Without an onboarding program
The cost of turnover
Turnover costs can seriously damage sales. On average, companies lose 25% of all new employees within a year. Up to 20% of staff turnover occurs within the first 45 days of work. The average cost of replacing an employee varies between $ 3,000 to $ 18,000.
Half of all external hires for senior positions fail within 18 months. Estimates vary by organization, but the cost of an unsuccessful entry for each executive level manager can reach $ 2.7 million.
32% of global executives consider the onboarding programs they participated to be poor.
Loss of productivity
New employees need 8-12 months to acquire competences comparable to their permanent colleagues. The training of new employees, in general, causes the company a loss of productivity that can cost from 1% to 2.5% of the total revenues of the company.
In the United States and the United Kingdom alone, approximately $ 37 billion is spent annually on unproductive employees who do not fully understand their work.
With an onboarding program
Improved employee performance
Organizations with defined onboarding programs experience a productivity of new hires greater than 54%. Employees of companies that have longer onboarding programs get full capacity 34% faster than those who have followed shorter programs (the difference is around 4 months).
77% of new hires who reached the first performance milestone followed a formal training program.
Manager satisfaction is increased by 20% when employees receive a formal training program. The automation of the onboarding activities given by a standard and defined program involves 18% more achievement of the first performance objectives of the employee.
Increased employee retention
Organizations with a standard onboarding process experience greater retention of new hires of 50%. The reason? If employees feel that they are learning and growing in your organization, the probability of losing up to 60% of the entire workforce will decrease within four years.
Onboarding programs help your employees interact more effectively with each other and understand how their roles work together. This can create a serene atmosphere of collaboration, create friendships in the office and, in general, have a very positive effect on productivity and satisfaction.
- 70% of employees say that good working relationships are a crucial element for a happy working life;
- 50% of employees with a good friend at work declare that they have a strong connection with their company;
- 58% of men and 74% of women would refuse a well-paid job if it meant finding a new environment where they did not get along with colleagues
The automation of onboarding activities, the orientation to company information allows HR managers to devote more time to the social and cultural elements of onboarding.
35% of companies provide less than 2 months and $ 0 for onboarding programs.
25% of companies say that their onboarding program does not include any type of training. 60% of companies declare that they do not set goals or targets for new employees.
Research shows that around 30% of all organizations work at the "passive onboarding" level, or rather starts from the idea that onboarding is a checklist of activities (not related to each other) to complete.
About 50% of all companies have a "high potential": the complete onboarding process has not yet been established in a systematic way within the organization, but some mechanisms concerning culture and connection are in place.
Only 20% of all organizations reach a "proactive onboarding" level by systematically organizing onboarding with a strategic approach to human resource management.
49% of companies are currently updating their onboarding programs: 22% are constantly updating them, 19% have updated them in the last 2 years, while 10% have not updated them for more than 3 years.
The competitive advantage
According to a recent study, 73% of respondents indicated that the major catalysts driving change in their onboarding programs are: improving performance and increasing retention of new employees.
22% of the companies interviewed that continuously update their programs are in a privileged position to discover and act on the indicators of the sector and on the trends of employees in the organization.
Technological tools are becoming the ideal solution for managing onboarding programs. Many companies use more technological options to speed up the process. The most popular training methods include e-learning courses, e-Learning and intranet platforms, videos, webinars and surveys.
- 62% of companies use a company intranet for onboarding
- 55% e-learning programs
- 40% a dedicated web portal
- 39% video
- 30% webinar
- 27% polls
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