A Complete Guide to New Employee Onboarding Part 2 — Benefits of a Robust New Employee Onboarding Plan

Recruiting and hiring new employees is expensive. In fact, according to the Society for Human Resource Management (SHRM), the average cost per hire is about $4,700. And when you factor in soft costs such as lost productivity, management involvement, and ramp-up time, that figure can quickly climb to two to four times an employee’s annual salary.

So how do you ensure your investment pays off? Start with a comprehensive employee onboarding process that equips new hires with the clarity, confidence, and connections they need to thrive.

“A great onboarding experience positively impacts new-employee satisfaction, engagement, and performance,” says Michelle Mikesell, G&A Partners’ chief people officer. “If an employee has an impactful onboarding process, they’re more likely to tell other people about it—and vice versa if they don’t.”

What should be included in your new employee onboarding process?

An effective employee onboarding process goes beyond first-day orientation – it’s a structured, ongoing experience that begins as soon as a job offer is accepted. The goal is to equip new hires with the tools, training, and connections they need to feel confident in their role and contribute meaningfully to your organization. And when done well, onboarding builds trust, sets expectations, and helps employees feel like valued team members from day one.

Elements of a successful onboarding process include, but are not limited to:

• Pre-onboarding welcome messages and introductory communications
• Administrative tasks and completion of required forms, including benefits enrollment
• Role-specific training and resources
• Introductions to teammates and managers
• Overview of company policies, culture, mission, and values
• Technology setup and integration
• Ongoing mentoring for guidance, feedback, and support

5 Key Benefits of a Comprehensive Employee Onboarding Experience

The early days of employment are some of the most influential in shaping how new hires acclimate to your company. A strong new employee onboarding process not only helps individuals feel prepared and welcomed—it can significantly improve retention, performance, and overall workplace culture. When thoughtfully designed, onboarding becomes a strategic tool to set employees up for long-term success.

Here are five ways a comprehensive onboarding experience can make a lasting impact:

1. Boosts retention by easing early transitions: Helping employees navigate their new jobs and workspaces shows that you are invested in their success and well-being. This helps to alleviate common stressors associated with starting a new job. In fact, according to Gallup, employees who say they had exceptional onboarding experiences are 2.6 times more likely to be extremely satisfied with their workplace and are far more likely to stay.
2. Fast-tracks administrative tasks: An organized onboarding process—powered by the right team and technology—helps streamline paperwork and reduce bottlenecks for HR and new hires. From tax forms and benefits enrollment to account setup and compliance documents, tasks that once felt overwhelming become efficient and manageable.
3. Accelerates new-hire productivity: By equipping employees with the knowledge, training, and tools they need early on, onboarding shortens the ramp-up period and accelerates performance—helping them contribute faster in a supportive, low-pressure learning environment.
4. Builds trust and connection: Time and attention spent welcoming new employees into your team lay the foundation for trust, connection, and long-term engagement. By prioritizing relationship-building early on, your company can create a sense of belonging that helps employees feel connected and valued from the start.
5. Strengthens company culture: Onboarding is your chance to bring company culture to life. By showing new hires what your organization values, how your teams collaborate, and how decisions are made, you help them feel connected and included. When employees see how their role contributes to the big picture, they’re more likely to feel a sense of purpose and belonging.

How an Employee Onboarding Process Can Help You Mitigate Risk

A new employee onboarding process doesn’t just support your team—it safeguards your organization. From the moment a candidate accepts your job offer, onboarding plays a critical role in setting expectations, fostering connection, and building momentum. When overlooked or poorly executed, onboarding can lead to disengagement, miscommunication, and costly turnover. But when it’s done right, it can help your organization mitigate the most common early-stage risks to employee success and satisfaction, including:

• Low employee engagement: Disengaged employees are less productive and more likely to be absent or disconnected from their work. Onboarding creates early opportunities for new hires to align with your company’s mission and values, helping them understand how their role contributes to something bigger and making it easier to stay engaged and motivated.

• High employee turnover: According to Business News Daily’s “What Does Poor Onboarding Really Do to Your Team?,” the risk of an employee leaving is at its highest during their first 45 days on the job. A supportive onboarding experience eases the transition, builds confidence, and helps employees feel welcomed—greatly reducing the likelihood they’ll seek out another opportunity.

• Unmanaged expectations: When there’s a disconnect between a new hire’s expectations and the reality of the job, team, and/or company culture, it can lead to disillusionment. This can affect their performance and your ability to attract and keep top talent. Onboarding provides the clarity and structure new employees need to navigate their role, understand team dynamics, and adjust more easily to your organization’s way of working.

A well-designed employee onboarding process can deliver lasting value—for your people and your business. In Part 3 of this series, we’ll share practical steps for building an onboarding plan that drives engagement, reduces turnover, and sets your team up for long-term success.