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The importance of an onboarding process

Adrian Sita
5 Jul, 2019
2 m read

What is Onboarding?

Onboarding is the process by which companies welcome and integrate their newly hired employees. Integration implies that the process starts before they arrive the first day at workplace and extends beyond the first week of an employee.

Let’s not confuse onboarding with orientation, though.

Orientation is just a step of the onboarding process where new employees get a feel of the environment (office) become more familiar, meet their new colleagues and get accustomed to their job duties.

A Forbes article reports that 25% of new employees leave the company within the first 12 months with the cost of losing one person equal to 2 years of his/her salary and thus having this process is critically important.

When we take into account the costs and the importance of retaining talent, it becomes obvious why this process is imperative to have in every company.

onboarding process

Why it is important?


Given the statistics above, an effective onboarding can improve a company’s employee retention and even more according to iCIMS - statistically the reduction of turnover from 44% to 14% just by using an “welcome to the team” process.


We estimate that with a good process productivity can increase to 54% and two times the level of engagement from their new employees.

An estimated cost of around $37 billion every year companies in US and UK are spending to keep unproductive employees who do not understand what they have to do.

The longer the process the better the productivity of the employee, with a year of the process being the period to avoid turnover.

Therefore, bringing a cost saving and digital system by offering to the recent hire the possibility to learn by themselves when they want at their own pace is the right thing to approach the process. We are creating instructional design courses and by using a learning experience platform like Knolyx we assure that the recent hire have the mentioned advantages in this very important process!

A new hire checklist can help in this process to offer one of the greatest experiences in your company.

Cost savings

One in four CFOs say that turnover accounts for 25% to 50% of labour cost according to Forbes. This cost includes the loss of productivity, sales and the additional costs of recruiting and integrating an employee.

An automated process could cut the costs down. Forbes reports that General Electric has improved productivity and reduced costs. The system named GE Hire has produced an estimated ROI in the first three years of 665%.

Beyond cost savings, the data generated from this system can be valuable.

Use the right combination of eContent and delivery platform to track the entire experience are mandatory in cost savings for this process. For sure we should mention these elements in the new hire checklist.

Before implementing an onboarding process it is vital to know how to create one, so a good documentation beforehand is essential, unless you opt for a system already existed.

Therefore, we recommend using a new hire checklist.

Some (final) thoughts

If you develop your own system, a brilliant way to share all the ideas and documents by using econtent is to use a learning and experience platform from our partners and friends - Knolyx.

This article is part of a bigger topic called: 

Onboarding process

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