15 Benefits of Effective Employee Onboarding for HR
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Hiring a new employee is an exciting moment for any company. You are probably looking forward to having them on the team, and they are surely eager to get involved in new projects.
It is important for new employees to start their work as soon as possible and apply their skills. Equally important, however, is that they understand and identify with the company culture, values, policies, and procedures. A well-designed onboarding program can give them the best possible start.
Discover 15 reasons why developing an onboarding process is essential for every HR professional.
1. Connection to the Company
Companies that offer an effective onboarding program have employees who feel more connected to them in various ways. When employees feel connected to their company, the likelihood of resignation is significantly lower.
Unfortunately, 20% of employees report that their company makes no effort to help them build connections and find support. An effective onboarding program would significantly help to strengthen these employees' trust in the company and give them a sense of belonging.
2. Boosting Self-Confidence and Skills
Effective onboarding programs have been shown to help employees work confidently and independently more quickly, thereby becoming productive team members faster.
Onboarding provides new employees with training on the company's products and services as well as the technical tools they need. In addition, they are given clear points of contact from whom they can receive important information and support. This networking can increase employee retention by 20 to 40%.
3. Improving the Employee Experience
Around 29% of companies report that ineffective onboarding programs lead to employees being faced with tedious and frustrating tasks. Since it takes an average of only 44 days to encourage new employees to stay, it is important for employers to avoid this problem.
A structured onboarding plan helps employees feel more supported and more connected to the company's mission. Both can strengthen employee retention.
4. Improving Perception of HR and the Company
Effective onboarding influences employees' perception of the HR team and the company. 17% of employers report that a less positive first impression has harmed their employer brand among applicants and new employees. Additionally, 44% of new employees say they had doubts about their new job, and 23% cried during the first week.
An effective onboarding program helps make a better impression. It can improve employees' understanding of their role and expectations and give them a sense of security and support.
5. Closing Skills Gaps
Some HR managers report that the quality of new hires has declined over the years. While this can have many causes, effective onboarding programs can help address these issues. Employers can use assessments to identify skills gaps and provide relevant training to employees who need it.
6. Assessment of Employee Suitability
About 70% of new employees decide within a month whether a position suits them, with almost 30% making that decision within the first week. While employees are determining whether they like the job, HR managers can use this time within the framework of onboarding programs to make the same assessment.
7. Integration of Remote Employees
Today, 76% of employees in the U.S. work at least partially remotely, and 35% work fully remotely. Good onboarding ensures that all employees, regardless of their location, are consistently informed about policies, procedures, and expectations. This can boost productivity and reduce stress for both employees and HR staff.
8. Ensure Standardized Training
HR managers reported in recent IceHrm surveys that they have difficulty ensuring that all new employees receive the same required training. An effective onboarding program can standardize the training process and help ensure that everyone completes their training requirements on time.
9. Process Optimization
At least 35% of HR managers have difficulty quickly getting new employees up to speed with their tasks. Developing more effective onboarding programs can streamline this process and ensure that employees do not waste time on tedious or frustrating tasks that do not help them.
10. Considering Employee Preferences
Most employees (86%) prefer some time for onboarding before they are required to fully handle projects and deadlines. An onboarding program helps you meet this preference and makes it easier for new employees to get started.
11. Resolving one of the biggest employee frustrations
Understandably, 97% of employees want training on the tools and software they will use in their job. However, 62% report that this training is insufficient. Employees also want clearer instructions and more points of contact to help them settle into a new work environment.
A well-structured onboarding process that facilitates direct contact with a manager, mentor, or advisor can eliminate these frustrations and increase employee satisfaction from the very beginning.
12. Support for Employees in Making Friends
For 87% of new employees, it is important to make friends at the workplace. Studies show that employees who have friendships at work are more engaged, productive, and innovative, have a lower risk of accidents, and enjoy their work more.
Effective onboarding programs focusing on support (e.g., mentoring, coaching, or online groups) can help employees make friends and build lasting relationships.
13. Increasing the Productivity of New Employees
Effective onboarding programs have been shown to increase the productivity of new employees by up to 62%. In addition to boosting overall productivity, the onboarding period is also shortened – an indicator of how quickly an employee can reach their full potential.
14. Avoid Wasting Resources
Higher employee retention and loyalty help companies avoid unnecessary costs due to high turnover. Since the cost of losing employees can range from $7,500 to $28,000, a good onboarding program helps conserve resources and minimize financial risks.
15. Ensuring satisfied teams
Effective onboarding allows new employees to work independently and avoid mistakes. This reduces the burden on other team members and departments within the company. Everyone benefits from careful onboarding of new employees.
The benefits of implementing a robust, well-structured onboarding process are undeniable and far-reaching, directly impacting a company's bottom line by significantly increasing productivity, boosting retention rates, and reducing costly turnover. Onboarding is far more than a checklist; it's a strategic initiative that shapes the entire employee lifecycle, from initial self-confidence to eventual team integration. For organizations using IceHrm, these fifteen benefits are fully attainable. The IceHrm Onboarding module is specifically designed to transform tedious, frustrating processes into a streamlined, positive experience. By providing tools for standardized training, clear policy communication, skill gap assessment, and connection support (like mentor assignments), IceHrm ensures that every new employee is quickly and confidently aligned with the company's culture and goals, leading to satisfied teams and measurable success.
