Why Employee Onboarding Is Important—and How to Maximize Results

How do you get new hires excited, engaged, and productive from day one? What’s the secret ingredient that keeps new employees around rather than heading for the door? It all comes down to one thing: effective onboarding.

Research shows that a well-designed employee onboarding process speeds up productivity, boosts retention, and builds a team that’s motivated and aligned with your company’s goals. Yet too many companies still approach onboarding as a one-and-done HR task. Let’s flip that mindset and explore why onboarding is important—and how to unlock its benefits.

What are the business benefits of employee onboarding?

1. Streamline training and boost new employee productivity

One in two new employees feels undertrained by onboarding. Plus, undertraining lengthens the time it takes for new hires to become productive. That’s part of why the current average for new hires to reach their full performance potential is 12 months.

Hiring a new employee is already costly, but prolonged training timelines like these can further drain resources, delay projects, and put stress on the rest of the team. A structured onboarding process streamlines the learning process, reduces ramp-up times, and gets new hires contributing faster.

Onboarding tips to boost new hire productivity

• Document and gather training resources. Document team systems, processes, or workflows—and provide tutorials on the physical tools or digital technologies new hires need to get started. Use an online learning platform to organize training resources in one centralized place for easy access and searchability.
• Set 30, 60, and 90-day onboarding goals. Chunk learning and assign tasks in manageable, incremental steps. Start with foundational knowledge or entry-level assignments before progressing into advanced topics.
• Swap out text-heavy PDFs and slide-based content. Avoid overwhelming new hires with a wall of text. Use multimedia elements like videos, images, infographics, and interactive content to make information easier to absorb. Bullet points and concise summaries can also enhance comprehension.

2. Support early engagement and job satisfaction

Onboarding experiences directly impact new hire satisfaction and engagement. Fifty-one percent of employees say they’d go “above and beyond” in their work if they had a good onboarding experience. Develop an onboarding program that connects employees to the company’s people, purpose, and culture to engage them from day one.

Onboarding tips for higher employee engagement

• Introduce new employees to team members. Facilitate team and company-wide connections. For example, you might create “meet the team” content, like short bio videos, profiles, or even a virtual team lunch. Or, pair new hires with an experienced onboarding buddy or mentor.
• Communicate the company’s mission, vision, and values. Understanding the organization’s purpose fosters a sense of belonging and encourages new hires to feel part of something larger. Connection to purpose builds pride and connection with the team or company culture.
• Explain the role’s importance to greater company goals: Go beyond a basic job description by explaining how their specific role contributes to broader company objectives. When new hires see how their work makes a difference, they’ll feel more motivated and aligned with the company’s mission.

3. Reduce turnover and increase new employee retention

Studies show that first employee onboarding impressions last. Eighty percent of new hires who receive bad onboarding plan to quit soon, emphasizing how successful onboarding can reduce employee turnover and related costs. A separate survey found that 72 percent of employees would stay longer at a company where they feel valued, supported, and genuinely cared for, versus a job that lacked those traits but paid 30 percent more.

For employers, this means a positive onboarding experience can make the difference between long-term employee retention and early exits.

Onboarding tips for employee retention

• Highlight career development and growth opportunities. Make it clear that your company cares about long-term professional growth. Provide resources on training programs, career advancement paths, and skill-building workshops that will empower new hires to envision a future with you.
• Create a welcoming environment: From their first day, make employees feel part of the team. Small gestures like a personalized welcome kit or a group lunch can go a long way in making them feel appreciated and excited to be part of the company.
• Establish regular check-ins: Schedule frequent touchpoints to see how new hires are settling in. Regular check-ins not only show your interest in their progress and satisfaction but also provide early opportunities to address any concerns before they become frustrations.

An effective onboarding process pays big

Getting the most out of employee onboarding initiatives starts with approaching it as a strategic business investment. Strong employee onboarding programs make employees feel welcomed and supported from day one. The payoff is clear: happier, more productive employees who stick around.

For more insights and tips on employee onboarding, be sure to check out our free e-book, The Future of Employee Onboarding: Online Training Solutions to Accelerate Impact in a High-Speed World.