Every year, companies spend a lot of money on finding the right people. But many new employees leave already within their first month. It’s easy to think that the hardest part is recruiting, but often it’s actually how new employees are welcomed that determines whether they stay or not.
Many companies see onboarding as something small that HR can take care of once the contract is signed. But that is a costly mistake. Here are some common problems:
- A new employee gets no real start and is thrown directly into the job
- No explanation of the culture, goals, or colleagues, leaving the person feeling alone
- Unclear expectations lead to uncertainty and dissatisfaction
- No support or feedback makes it hard to know if you’re doing things right
Research shows that poor onboarding makes new employees leave twice as often as those who receive a good introduction.
What poor onboarding costs
- Companies with strong onboarding retain up to 82 percent more new employees, according to Oak Engage.
- Hireology says that it often costs more than 1,500 dollars to onboard a new employee. If things go wrong, many leave within 90 days.
- According to Eddy (and SHRM), it can cost up to 200 percent of an employee’s annual salary to replace someone who leaves early.
- HiBob shows that companies that focus on team-building during onboarding have a 50 percent higher chance of retaining new employees.
- Built In says that losing an employee can cost between half and two times their annual salary, depending on the role.
The cost is not only about money. It takes time to train new people, the rest of the team is affected, and valuable knowledge is often lost when someone leaves.
Onboarding is a strategic tool
Many companies still hold old mindsets: “good people can manage on their own,” “having a structure takes too much time,” or “HR can handle it.”
But onboarding is not optional. It is a way to connect recruitment with real results. It ensures that new employees understand the goals, values, and how the job works. It is not just about welcoming them, but about giving them a reason to stay.
Three steps to onboarding that works
1. Provide insights that matter
Explain why onboarding is important. Show how the job connects to the entire business. Let new employees understand the customers, the competitors, and the challenges you work with. This helps them find their place more quickly.
2. Tailor to role and situation
Every role requires a different start. Consider what this particular person needs to know. Sales, technical, and customer service roles all require different things. Also adjust the pace and the amount of support needed. This helps people feel recognized from the very beginning.
3. Create structure and follow up
Set clear steps for week 1, day 30, and day 90. Track what has been done and what remains. Assign responsible persons for each part — onboarding, training, and team contact. If something isn’t working, adjust quickly. Good follow-up helps people get up to speed faster.
What you gain from effective onboarding
With effective onboarding, more employees stay, get up to speed faster, and have a secure start. According to several studies, up to 82 percent more new hires stay when onboarding is clear and engaging. It saves both time and money. But perhaps most importantly, it shows that you genuinely care.
Stop seeing onboarding as an extra
Many companies do not fail in recruitment; they fail in the transition to keeping someone. Thoughtful onboarding helps you provide support, build engagement, and create direction from day one. When onboarding becomes part of everyday work instead of just a project, both people and the company grow.
TM Connect helps you find the people who make a difference.
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