Efficient New Employee Onboarding Crucial for Retention According to the Latest Studies

Efficient New Employee Onboarding Crucial for Retention According to the Latest Studies

Retaining a new employee long term is one of the biggest challenges for any business organization. And this is because of a poor onboarding process! This is not just a claim made in a hurry but is backed up by statistical evidence.

According to a study done by Gallup, 88% of organizations are inefficient to offer an effective new employee onboarding program. This indicates that only 12% of employees agree that their organization did a commendable job of onboarding new hires.

This statistics throws light on the fact that most business organizations think that onboarding and retention are two different strategies. But such is not the case! Both these strategies are linked which will affect the company’s performance, turnover, and employee performance. Let’s take a look at the link between these two crucial strategies.

Onboarding and Retention

When you hire a new employee, your onboarding process will be the very first impression s/he will get. Now, you would say that the interview process can be counted as first impressions too. But you need to understand that the interview process is external whereas the onboarding process is internal.

The new employee will become an internal part of your organization and needs to know all the crucial information for a great performance. S/he will sign in your system for the first time; will meet his/her team members for the first time and more. If these experiences are positive, chances are the new hire will stay long-term. On the other hand, if s/he has negative experiences, you might lose the new hire in as less than 90 days.

As per the latest statistics of Digitate, employees who experience negative onboarding are twice as likely to leave the job and look for a new one. So, onboarding and retention are closely linked to each other. Any business organization that intends to keep its employees long-term must focus on creating an outstanding onboarding program for new hires.

Length of the onboarding process

As much as having an onboarding program is important so is its length. According to HCI, most business organizations focus on only the first week of employee pre onboarding leaving the new hire confused and discouraged.

One week is a very short time for the new hire to understand and adjust to the company environment, its culture, and politics. This leaves a major psychological gap between the new hire and the organization, its vision, and goals.

HCI states that any onboarding program must focus on the first 90 days of the new hire. This time can extend almost up to a year to ensure that the new hire has now become an integral part of the organization comfortably. This will also enhance the overall performance of the new employee benefitting the organization.

Cross Boarding

As much as the new hire onboarding process is crucial, so is cross boarding. Although internal hires don’t need any company information, they will need time to acclimatize with the new team.

The latest HCI statistics states that 81% of organizations do believe in creating an effective cross-boarding program. However, only 27% execute the program in reality. Internal hires are the biggest assets for your organization that must be cross-boarded efficiently.


In conclusion, the best new hire onboarding programs are elemental to retain new hires long-term. Considering the current scenario, when finding and hiring a new employee with the right skills is a struggle, having high potential employees long-term is a must.

And at Squadsy, we understand the need for advanced tools that make the creation and execution of the onboarding process smooth, easy, and hassle-free. Hence, we have developed excellent software with advanced features that ensures you have the right tools by your side for an efficient onboarding process. Get in touch with us to request early access.

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