3 Main Benefits of Effective Employee Training and Onboarding


Developing an effective employee training and onboarding program has tremendous benefits, but many companies don't have a well-developed onboarding plan.

In fact, as many as four out of five companies lack a dedicated budget for onboarding.

But, the companies that do invest the time, money and staff into developing effective onboarding program experience:

  • Improved employee retention
  • Decreased turnover expenses, and
  • Increased productivity.

Onboarding Benefit 1: Improved Employee Retention

Half of all hourly employees will leave for a new job within the first 4 months, while half of all senior outside hires fail within year and a half. A proper onboarding program can increase employee retention.

Almost 70 percent of employees are more likely to stay with a company for three years if they experienced great onboarding.

An effective onboarding and training program encourages employees to stay engaged by helping them feel connected to the company and culture and increasing their confidence in how to do their job.

Improved Employee Retention

Onboarding Benefit 2: Decreased Turnover Expense

A natural benefit of increasing employee retention is decreasing turnover expenses. The organizational costs of replacing an employee is one to three times the employee’s annual salary.

Lattice CEO Jack Altman says companies should look at four areas when determining the real cost of turnover:

  • Cost of hiring
  • Cost of onboarding and training
  • Cost of learning and development
  • Cost of time with unfilled role

Turnover Cost Calculator: See How Much Employee Turnover Is Costing Your Company

Onboarding Benefit 3: Increased Productivity

Finally, investing in onboarding and training, can improve your productivity. Businesses in the United States and United Kingdom lose an estimated $37 billion each year from employees not understanding their jobs.

The staggering cost is not surprising given the number of companies that fail to properly onboard employees. A survey of more than 500 HR professionals found only two-thirds of companies training new employees as a part of an onboarding program.

Even companies with onboarding program often failed to implement best practices:

  • Only 58 percent of companies provide clear job titles and set expectations for employees.
  • Only 39 percent of companies measure onboarding and productivity by setting milestones and establishing goals for new employees.
  • 10 percent of companies reported no onboarding and retention best practices at all.

Investing the time and resources into properly training and onboarding your new employees is essential. If you’re experiencing higher turnover, it could be a sign your onboarding program is lacking.

Use the turnover cost calculator and the benefits listed in this blog post to help build a strong business case for building a better onboarding program.

Related:- Top 6 Benefits of eLearning for Employee Training


To learn more about how Apty helps with onboarding and training new employees for your processes and enterprise software, schedule a demo today.

Originally posted on October 31, 2018

Nathan Altadonna
Written by Nathan Altadonna

A former journalist and product manager, Nathan is a proud tech geek who blogs about digital transformation, employee productivity, and enterprise software. In addition to his work with Apty, Nathan runs his own consulting company, Innate Digital, helping companies develop content and get the most out of their marketing tech stack.

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