How to Boost Retention with Effective Onboarding

Jul 16, 20243 min read

Attracting top talent is only half the battle, keeping them engaged and committed to your organisation is the key to business success.

High employee turnover leads to increased expenses across recruitment, training, productivity and, a more negative perception of your brand.

Businesses who actively combat this, see a more skilled, engaged, and loyal workforce, contributing to long-term organisational stability and success. By investing time and resources into welcoming and integrating new hires, you can significantly improve employee retention

....and it starts as soon as they accept the offer.

First impressions count

Imagine you go to a new restaurant, and the waiter was great when you booked, but the service was slow, they left you waiting and then gave you the bill without explaining you needed to pay at the front desk. This could leave you with a negative perception of the restaurant, even if the food was good! Although a positive, thoughtful service would have the opposite effect ... and you'd probably be telling all your friends!

With onboarding, you’re following similar principals. The first impression new hires get gives an initial impression of how you do things. Super attentive and meticulous? Or slow and a little disjointed? It's your opportunity to set the tone!

When done well, onboarding can have a major impact on retention:

Organisations with a strong onboarding process improve new hire retention by 82% and productivity by over 70%.
Employees who had a negative onboarding experience are twice as likely to look for new opportunities in the near future.
20% of employee turnover happens in the first 45 days, often due to a poor onboarding experience.

So what does a great onboarding process look like?

Engage with new hires often after you provide the offer. This piece is critical, as it the most common time for jobseekers to have change of mind (usually after you’ve turned down other applicants!) Set a weekly check in reminder and send them company relevant information or news. These steps will keep your new employee engaged, making them feel valued and creating a sense of familiarity.
Provide new starters with a welcome kit, either on day one or if you want to go the extra mile, before they start. This builds excitement and helps them feel not only prepared, but welcome… increasing the likelihood they'll show up ready to stay.
Make the first day special. Send them a text in the morning sharing your excitement for their start and giving them instructions for their arrival. Ensure you give good team introductions, provide a clear agenda, a set-up workspace or even a welcome lunch.
Have their first day planned out so new hires know what they are doing and aren't left feeling uncertain or awkward when they have gaps in the diary.
Assign a buddy to provide guidance and help new hires navigate the organisation. Mentors serve as an ongoing resource beyond the first few days.
Utilise an onboarding portal to centralise information, automate paperwork, deliver training modules, and foster social connections. Gamification and interactive elements make learning fun.
Survey new hires at key milestones (30, 60, 90 days) to evaluate the effectiveness of your onboarding program. Use insights to identify gaps and make data-driven enhancements.
Personalise the experience based on role and needs. While some elements should be standardised, tailor parts of onboarding to the new hire's position, location, learning style, etc. Customisation demonstrates you value them as an individual.
Involve leadership to convey importance: Have executives and senior leaders participate in onboarding to welcome new hires, share the company vision, and underscore that each employee matters. This promotes engagement from the top.
Treat onboarding as a continuous journey rather than a one-time event. Regular check-ins, ongoing training, and mentoring ensure new hires have the support to succeed long-term.

The Bottom Line

Effective onboarding is a powerful tool for boosting retention.

By engaging new hires early, setting them up for success, and helping them integrate into the team, you're not just bringing them on board - you're providing an experience reflective of your business.

Invest in a comprehensive, engaging onboarding experience and watch your retention rates soar. Your employees - and your bottom line - will thank you.