Imagine this: you just got a new job. It’s fully remote, so they say they’ll send you a laptop before your first day, along with a Zoom link for day-one onboarding.

It’s the night before your first day, and that laptop still hasn’t arrived. You got an email with that link they promised, but haven’t heard anything from anyone else — not even your new manager.

Or maybe your new role is in-office. You’re excited to connect with others in person and immerse yourself into the culture. But on your first day, you meet with IT to get your laptop and credentials — but don’t hear from your manager until hours later. 

What’s your impression of the company at this point? Maybe a little disorganized or unenthusiastic?

More importantly, how are you feeling? Unappreciated, forgotten, or annoyed?

As an employer, this is a situation that’s hard to come back from. It can take a lot of effort and time to build trust in an employer/employee relationship, and this poor first impression has started that off on the wrong foot.

And new hires aren’t feeling the pressure to stay put. In fact, they’re increasingly becoming the most likely to leave a company. Almost 40% of employees who have been with a company for less than six months plan to leave within a year.

The TL;DR: prioritize your onboarding processes or risk your retention numbers.

In this guide, we’ll cover the stages of onboarding, how it impacts retention, and ways to improve the onboarding experience.

What is Employee Onboarding?

Employee onboarding is the process of getting your new hires up to speed on the organization and their role within it. It should be your way of welcoming them, making them feel like they belong, and setting them up for success.

But employee onboarding isn’t just about getting that laptop in the mail and taking them through paperwork on their first day. (For starters, employee onboarding starts well before a new hire’s first day — but we’ll get into that in the next section.)

Onboarding not only integrates new hires into your workplace, but it also helps them get settled, be productive, and provide value quickly. A strong onboarding process is also beneficial for you: it means better retention. Just look at these stats:

• 82% of employers with a strong onboarding process see improved retention
• 86% of new hires decide if they’re going to stay at a company in the first 90 days

The challenge is that onboarding processes often take a backseat to other priorities. In fact, Qualtrics reported that nearly 60% of HR leaders don’t prioritize onboarding. So let’s talk more about how to easily make it a priority moving forward.

The Stages of Employee Onboarding

 

Stage 1: Preboarding

Everything that happens after a new hire signs their offer letter and before their first day is called preboarding. 

Preboarding may seem like a piece of cake to handle — and it often is. But don’t underestimate its importance. Preboarding helps calm first-day nerves, knocks out some of the more tedious tasks, and reassures new hires that they’ve made the right decision.

While preboarding activities will differ from company to company (especially for remote versus in-office roles), here are a few to consider adding to your onboarding process:

• Completing essential paperwork, like tax, direct deposit, I-9, and emergency contact forms
• Sharing all the key first-day details, including an agenda, office address (or Zoom link), contact information, dress code, etc. 
• Sending a welcome email and company swag to make them feel like they’re already part of the team
• Encouraging the hiring manager and team members to connect with the new hire on LinkedIn and send personal messages to show their enthusiasm
• Asking the hiring manager to create a 30/60/90-day plan, pull together onboarding documentation, and prep a mentor or buddy to make sure everything is seamless for day one and communicated to the new hire
• Preparing their workspace, whether that means setting up an office desk or shipping a laptop and materials for remote employees

Stage 2: Orientation

When you hear the word “onboarding,” you probably think about that first day, sitting in a meeting room and working through mounds of paperwork. This is actually the orientation stage of onboarding.

Often led by someone in HR, orientation is the first formal introduction to your company. It’s where your new hires get their first real taste of the culture and workplace. 

Orientation usually covers:

• An overview of your company, including what you do, what products or services you offer, and what your mission and values are
• New hire paperwork, if it wasn’t already handled in preboarding
• A rundown of benefits, including how, where, and when to enroll
• Setting up laptops, software access, building keys, etc.
• Touring the office, if they’re working on-site
• Required training for things like harassment, safety, and security

Stage 3: Ongoing Training

You may not think that ongoing training is part of the onboarding process, but it is. Just like onboarding doesn’t start on day one, it doesn’t end then either.

Ongoing training keeps new hires engaged and supported in their first 30, 60, or 90 days (or whatever period of time you choose). This stage is important because it gives new hires deeper knowledge about the role and company.

The ongoing training stage may include:

• Structured training sessions to quickly get new hires up to speed on products, services, or anything else critical to their role
• A quick wins project list that lets new hires meaningfully contribute something in the first day or week
• Regular 1:1 meetings with their manager to discuss short-term wins, long-term goals, and career aspirations
• Check-ins with HR to make sure new hires feel supported and to gauge their engagement levels
• Involvement in a mentorship program

How Onboarding Impacts Retention

Starting a new job is a vulnerable time for employees. They often don’t know anyone and there’s likely a knowledge gap.

It’s also a vulnerable time for employers. It’s a time when new hires decide whether or not they’ll stay, making the connection between onboarding and retention stronger than people think.

Only 12% of employees think their organization has a strong onboarding process, though. That’s a lot of people on the other end who feel like onboarding is lacking at their companies.

Onboarding sets the tone for an employee’s entire experience with your company. If you do it wrong, you’re looking at dwindling retention rates and higher turnover costs. 

But do it right, and it can be a game-changer for boosting engagement, driving productivity faster, and reducing turnover costs.

Employee Onboarding Boosts Engagement

Employees who are engaged are more motivated and committed to producing good work. This includes looking for ways to be more effective and efficient, proactively helping coworkers who are under water, and doing more than what their role calls for.

This kind of performance and engagement starts with onboarding.

But a 2024 Gallup report found that only 30% of US employees are engaged — the lowest it’s been in 11 years. This tracks, as Gallup also reported that 20% of employees say their most recent onboarding experience was poor or nonexistent.

A strong onboarding process means new hires aren’t left wondering where they fit in (both organizationally and socially) or what’s expected of them. Instead, they get familiar with their role, better understand the company’s goals, and can connect the two — which supports impact and growth opportunities, and is fundamental for engagement.

Engaged employees are also more likely to stay with a company. Gallup data shows that highly engaged companies have 24% lower turnover (in high-turnover organizations) and 59% lower turnover (in low-turnover organizations) than companies with low engagement.

That’s a mouthful. Bottom line: engagement (and thus, engaging onboarding processes) is critical for retention.

Employee Onboarding Drives Productivity

One of the hardest parts of hiring new employees is the time it takes to see an impact from their work. (It also adds to the overall cost of hiring.)

But new hires don’t like this part, either. They want to be productive and add value as quickly as they can.

The statistics on this are all over the place. Studies have shown that peak productivity could take anywhere from six to 12 months, and it’s largely dependent on the role, job level, etc. But one thing is clear: it doesn’t happen overnight.

A strong onboarding process can significantly increase this speed to value. The right training, resources, and support give new hires the confidence to hit the ground running. And the faster they can make meaningful contributions, the more likely they are to feel fulfilled and committed to their role.

The company also benefits when a new hire reaches peak productivity quickly. Teams operate more efficiently and reach goals faster. And since motivated employees are 87% less likely to resign, companies also reduce their risk of turnover.

Employee Onboarding Reduces Turnover Costs

Turnover is expensive. The Society for Human Resource Management estimates that the cost of losing an employee can be up to nine months of that employee’s salary.

You’ve got direct costs of recruiting, onboarding, and training a replacement — not to mention the indirect costs of lost productivity and reduced team morale.

But a strong, comprehensive onboarding process can help to reduce these costs. It’s actually quite simple. When you invest in onboarding, you invest in starting new hires off as engaged, productive employees — employees who are far less likely to leave

7 Ways to Improve Your Onboarding Process

Onboarding programs are often an afterthought. (Remember the stat from earlier? Nearly 60% of HR leaders don’t prioritize it.)

Not prioritizing it is detrimental to your organization, though.

A strong onboarding process isn’t just a formality — it’s your first true opportunity to show new hires what your company is all about and why they made the right choice.

Whether you’re planning your first-ever onboarding process or need to give your current one a face lift, this section will offer actionable steps you can take to make sure every new hire feels supported, connected, and ready to thrive.

Focus on Your People

A lot of people see onboarding as a way to get new hires up to speed quickly on the role and company — and they’re not wrong. But it’s important to prioritize the employee’s onboarding experience over the company’s immediate needs.

The first few days and weeks (and heck, even months) can be overwhelming. When you shift your focus to what they need to succeed, you build trust and loyalty. And that’s what drives higher engagement and retention long term.

Make Expectations Clear

No one likes uncertainty, especially a new hire. To reach peak productivity, they need to know exactly what’s expected of them, including job responsibilities, company goals, and performance metrics.

Clearly communicating these expectations will help new employees understand how their work contributes to the bigger picture, which supports confidence and belonging. It also reduces the anxiety that inherently comes with starting a new job.

Use Structured Training Programs

Training isn’t just a long-term perk for employees. It’s also an important part of onboarding. The key: create a training program that’s specific to the new hire’s role, rather than using a one-size-fits-all approach.

Of course, sessions like harassment, security, and safety may be required across the board. But a mix of learning opportunities — formal courses, hands-on workshops, and shadowing team members — will show your new hire that you’re invested in their growth and development.

Incorporate Buddy Programs

Starting a new job can feel lonely, especially when a new hire comes in not knowing anyone. A mentorship or buddy program can help bridge this gap by matching new hires with experienced or tenured employees who can offer guidance.

This kind of connection helps new hires feel more comfortable and accelerates their integration into the team. Plus, having a friendly face to go to for support can reduce the likelihood of early turnover.

Integrate New Hires Socially

Along the same lines as a buddy program, make sure you have a process for helping new hires connect with teammates socially. They want to belong, not feel like an outsider.

Encourage connections by organizing or suggesting team lunches, virtual coffee chats, or after-work activities. Ask current employees to reach out and make the new hire feel welcome. 

And remember: there’s value in giving new hires the tools to build connections within their department and across the company. Direct teammates, especially those in similar roles, can help with resourcing or providing feedback, while cross-functional team members can be invaluable for brainstorming and visibility.

Building these relationships early on will help them feel more connected, which can lead to higher job satisfaction and retention.

Make Feedback a Two-Way Street

Feedback shouldn’t be a one-time event during orientation. It needs to be an ongoing conversation between new hires and their managers, as well as new hires and HR. Regular check-ins should be a chance for everyone to share feedback.

As an HR leader, this feedback loop should give you valuable insights into how the onboarding process is working and where there are even more areas for improvement.

Leverage Technology

Technology can make your onboarding processes more efficient, organized, and engaging for everyone. For you, technology can automate some of the most tedious, time-consuming tasks and track onboarding progress and metrics.

For your new hires, it can provide easy access to the resources they need the most, while facilitating conversations and collaboration with teammates. It’s a win-win.

Conclusion

Employee onboarding isn’t just about getting paperwork signed and getting new hires set up with the right Slack channels. It should be the foundation of your employee retention strategy — especially for remote workplaces.

Think back to that worst-case scenario: a new hire who feels overlooked and undervalued, before they even started. Sadly, this is far from a hypothetical situation. It’s a reality that so many new hires and companies have to deal with — and a big reason why half of US employees are open to leaving their organizations.

The good news is that you have the tools to turn things around.

You know it all starts with focusing on the three stages of onboarding: preboarding, orientation, and ongoing training. Show your new hires they made the right decision by joining your company, help them understand the company and their role within it, and give them the resources to settle into their new position and grow.

When you do all of this effectively (read: you have a proven process in place), you’ll enjoy higher engagement, faster time to productivity, and lower turnover costs. 

So ask yourself: Where are the areas for improvement? How can you better support your new hires? When you make onboarding a priority, you’re not just the last step in filling a position — you’re building a team that’ll stick around.

Donut offers a number of solutions to support your employee experience goals. If you’re new to Donut, it’s easy to get started for free today.

Already using Donut? Checkout our latest pre-built Journey templates to get a jumpstart on automating programs from onboarding to mentorship.