3 Benefits of Employee Onboarding You Need to Know

Courtney Gray

This article explains the three major benefits of investing in an employee onboarding program, and will also underline why it’s important to make a structured onboarding process for new hires. 

1. An Onboarding Program Decreases Cost

It costs money and time to recruit and hire new employees. The average cost of replacing an employee is nearly €3550. This includes:

  • External recruitment costs, e.g. pre-hire assessments and marketing 
  • Internal recruitment costs, e.g. full-time recruiters and referral rewards 
  • Hiring metrics, e.g. timeframe to fill headcount, attrition rate and candidate quality

So a poor onboarding of new hires is expensive in terms of recruitment processes and loss of productivity. Actually, it’s estimated that the organizational costs of employee turnover range between 100% and 300% of the replaced employee’s salary.

The good thing is that if you have a successful and well-structured onboarding program, you save time and money meanwhile the employee productivity will improve.


2. Onboarding Means Improved Productivity 

Improved employee productivity doesn’t arrive overnight or within the first months. A study shows it takes approximately 8-12 months for a new employee to reach the wanted productivity level. 

Employees at companies with a longer onboarding program gain full proficiency 34% faster than those with shorter programs.



When that’s said employee onboarding has an enormous impact in the results. Latest statistics show that the organizations with a standard onboarding process experience 50% greater new hire productivity


3. Onboarding Results in Better New Hire Retention

You save money and improve employee productivity when having a good and structured onboarding. This affects the new hire retention positively since a great employee onboarding can improve the retention by 82%

Research made by O.C. Tanner shows that:

69% of employees are more likely to stay with a company for three years or more if they experienced great onboarding.


The reason and conclusion are simple. When you onboard new hires in a structured, meaningful and efficient way they are more likely to stay with you longer. They know the organizational goals and the personal milestones they have to reach.