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Onboarding Employee Experience

Why is the Employee Onboarding Process Important?

December 15, 2022
7 min read

The Essential Guide To Buying an Onboarding System


Think back to the first few weeks at your job. What made you want to stay there? What were you surprised to learn? Did you feel prepared to perform your job duties after a few weeks or months? 

Your answers say a lot about the employee onboarding process your company has in place. Whether you’re disengaged and looking for a new role or a motivated employee who plans to stay for years, your onboarding process likely had a bigger impact than you realize. And the same goes for all of the other employees at your organization, which is why onboarding is such an important part of the employee lifecycle.

#Onboarding is the foundation of a great #EmployeeExperience — but only 12% of employees say their company is doing a good job. Find out why onboarding is so important:

What is employee onboarding?

Employee onboarding is the process of introducing new hires to their new role and work environment. During onboarding, they learn their job duties, get to know their coworkers, and become more familiar with company culture. It’s when they receive training, learn their job duties, and find out how success is defined for their role.

Onboarding new employees also includes the logistical side of hiring — completing new hire paperwork, submitting documents, and assigning equipment. This often takes place during employee orientation, which is just one part of an effective onboarding process that usually takes place on the first day or over the first few days of employment.

Orientation may be a class or one-on-one. It’s when employees get set up with their equipment and get access to the programs they’ll be using. In many onboarding programs, orientation is when new hires complete mandatory training, for example, harassment training. Orientation is often headed by an HR manager or specialist, while onboarding programs are largely executed by hiring managers. 

A good onboarding process starts when the offer letter is signed and lasts at least 90 days, though experts agree that it can take new employees up to one year to become proficient. Regardless, a formal onboarding plan that begins prior to their start date makes new hires feel welcome, supported, and excited about their new role.

Read more: What is Employee Onboarding?

Why is employee onboarding important?

Onboarding is the foundation of the employee experience. Employees who had a good onboarding experience are 3x more likely to say they feel supported and prepared to do their job. They stay longer, feel more connected to their company’s goals, and are motivated to do their best work. Onboarding gives new hires the tools they need to do their job well and shows them how it fits into the big picture.

But did you know that only 12% of employees feel their company has a good onboarding experience? That means there’s a lot of room for improvement when it comes to the average onboarding process.

Understand the importance of employee onboarding so you can create an awesome onboarding experience for your new hires. Check out our list of six reasons a successful onboarding program is important.

Employees who had a good #onboarding experience are 3x more likely to say they feel prepared to do their job and supported at work:

1. Helps new hires adjust

No matter their job, new team members are not likely to thrive if they don’t have time to adjust. New hires at every company need the chance to learn how to perform their daily tasks, meet their coworkers, and get familiar with company culture. Beyond the basics, new employees can talk to managers about how they will contribute to company goals, projects they’ll be working on, and other role specifics.

Onboarding also gives employees the opportunity to make a plan for their future at the company. New hires can talk to their managers about career paths and their own personal and professional goals, and managers can share information about learning opportunities and mentorship programs.

Download ClearCompany’s Employee Onboarding Checklist to create your own onboarding plan.

2. Improves productivity and retention

Research shows that companies that put onboarding programs in place saw an increase in productivity of up to 62% among new recruits. That shouldn’t be a surprise since feeling prepared and supported also increases confidence, which has a positive effect on performance.  

It also follows that confident, prepared employees tend to stay with their employers longer. The same research showed 50% higher employee retention among new hires after onboarding plans were implemented.

3. Establishes connections with coworkers

Employees increasingly want to work for a company that values their input and treats them with empathy and respect. They also want to form relationships with their colleagues — according to Gallup, getting to know the people they work with was the most valuable part of many employees’ recent good onboarding experiences.

While it’s easy enough to do quick introductions, you can help new hires start more meaningful relationships during the onboarding process. Whether your team is remote, hybrid, or in-office, employee onboarding software can make it easier. With digital onboarding tools, new hires can:

  • Virtually “meet” their teammates in their new hire portal
  • Collaborate with managers in a shared digital 1:1 Workspace
  • View colleagues’ goals and set their own, and see how they align with company goals

Want to learn more about the benefits of onboarding software? Read our post: What is Onboarding Software? 

4. Increases employee engagement

Designing a plan of action for new employees’ first days and weeks shows them you care about making them feel welcome. It’s an immediate indicator that your company is invested in new hires’ long-term success. Taking the time to answer questions, explain company history, and discuss goals — both the company’s and the new hire’s — during onboarding lays a foundation for strong engagement.

5. Saves time and money

Hiring new employees is expensive and takes lots of time, both for HR and talent acquisition teams and hiring managers. It can cost up to 33% of an employee’s salary to hire a replacement — not to mention the time involved in reposting the job description, recruiting, screening, interviewing, hiring, and onboarding another new hire. A great onboarding process increases employee retention, reducing these costs and saving countless hours for your HR team. 

It’s clear from our list that the importance of onboarding your new hires can’t be overstated. Show all of your employees from day one what your company is all about with a stellar onboarding experience that produces confident, motivated, and loyal employees. 

You can improve your employee onboarding experience with ClearCompany. Our Onboarding System combines with the power of our Applicant Tracking System to bring you best-in-class Talent Acquisition software.

ClearCompany comes with the tools you need to build your own great onboarding experience:

  • Mobile-friendly new hire self-service portal containing company information, forms, and more
  • Intelligent forms enable compliance and easy digital recordkeeping
  • E-Verify, WOTC, and background checks built into the platform
  • Integrations with your existing payroll and HRIS software

Get a personalized demo of ClearCompany’s Onboarding System to test these tools and more. Sign up to speak with one of our experts today.

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