The Cost of Poor Onboarding (And How to Fix It)

Article Summary:  

Many organizations do a poor job of onboarding new employees—leaving them frustrated, disengaged, and more likely to leave. Why onboarding matters, and practical tips for how to onboard new hires successfully.

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Effective onboarding programs are critical for helping new hires feel prepared, connected, and motivated from day one. When it comes to meeting new people, you know that first impressions are essential. They make a big difference in how people view you going forward. The same is true for new employees and their first impressions of your organization. Having a good onboarding program is essential in so many ways.

Consider this data from BambooHR.com:

• 70% of new hires decide whether a job is the right fit within the first month, and 29% decide within the first week.
• companies have 44 days on average to influence a new hire’s long-term retention.

According to the Work Institute’s 2020 Retention Report, 37.9% of their interviewees exited their organization within 365 days or less.

According to Gallup, workers who had exceptional onboarding experiences are 2.6 times as likely to be extremely satisfied with their workplace (and thus much more likely to stay there): “Simply put, to get exceptional employee outcomes, you need exceptional onboarding.”

What are the signs of a good onboarding program? New workers feel fully prepared to do their job and supported by their colleagues in their role. They also feel genuinely connected to their colleagues and to the organization’s purpose, values, vision, and culture.

A poor onboarding program leads to the following damaging effects:

• higher turnover (leading to increased recruitment costs and project delays)
• lower motivation, engagement, and job satisfaction
• reduced productivity
• increased errors
• poor cultural integration
• damage to employer brand

“The risk of a poor onboarding experience is that it can lead to employee dissatisfaction, which can have long-term effects on morale and productivity. A bad onboarding process can also make new hires feel isolated, unmotivated, and disconnected from their colleagues. This can cause them to become disengaged with their work quickly, leading to higher turnover rates and an overall decrease in team performance.” -Michelle Hague, HR Manager, Solar Panels Network

 

The Depressing Data on Onboarding

How are workplaces doing with onboarding? The data are depressing: too many new employees feel unprepared and unsupported. This sets the stage for frustration, disengagement, and early departures. Some revealing data:

• “only 12% of U.S. employees say their company does a good job of onboarding.” (Source: 2021 Gallup report)
• 23% of employees admit they’ve cried within a week of starting at their new workplace. (2023 BambooHr.com report)
• 32% of new hires find their onboarding experience confusing, and 22% find it disorganized. (Paychex survey of 1,002 employed Americans that have started working for their current employer within the past year)

 

8 Common Mistakes in Onboarding

Many organizations unintentionally sabotage new hires’ success. Below are eight common onboarding mistakes. (See if your organization is falling into these traps.)

1. Lack of Structure and Planning. Too many organizations don’t have adequate onboarding plans. Their plans lack structure and depth. Companies think that giving an orientation is adequate for onboarding. Far from it. Organizations throw new hires into their jobs without sufficient guidance, leading to confusion, frustration, and turnover.

“The worst thing for a new employee is being wooed through the recruiting process and then arriving on the job and the receptionist isn’t even expecting you or your office isn’t set up.” -Ben Peterson, CEO, BambooHR

2. Information Overload. Many workplaces bombard new workers with too much information at once. According to Grace Lau writing for StrongDM.com, “58% of companies admit that they focus on processes and paperwork when onboarding new hires.” That’s informational assault, not onboarding. Better instead to pace and spread out the learning.

“Forcing too much information on new colleagues will raise pressure and can quickly overwhelm them…. you have to think of what will be important for the employee in the first week, in the next three weeks, and within the first six months.” -Stefanie Frenking, Head of Global Recruiting, Spreadshirt

3. Lack of Clear Expectations. When new hires begin, many of them don’t get a clear sense of what success looks like in their role or how their manager will evaluate their performance. They’re kept in the dark about their major objectives for the first 90 days and first year. This sets them up for frustration and perhaps failure.

4. Lack of Manager Engagement. When managers aren’t actively involved in the onboarding process, it leaves new hires feeling unsupported or undervalued.

“Onboarding is the responsibility of the manager. Oftentimes, the biggest mistake I see is a manager not taking the lead on onboarding tasks.” -Ricky Joshi, Co-Founder and Chief Strategy Officer, Saatva

5. Neglecting Culture and Connection. Many organizations focus mostly on paperwork while ignoring culture and connection. According to a BambooHr.com report, 20% of workers say their company doesn’t do anything specific to help them find support among their coworkers or make new friends. Culture and relationships should be at the heart of onboarding.

6. Not Seeking Feedback. Too many workplaces don’t ask new hires for input on the onboarding process. And they don’t evaluate their programs with surveys or other means.

7. Not Addressing Remote or Hybrid Needs. Many onboarding programs treat remote workers the same as on-site ones. They lack the intentional connection-building needed for remote workers. According to a Paychex survey, “On-site and hybrid employees fare better during onboarding than remote workers, 36% of whom found the process confusing.” (Check out AIHR’s 2025 Guide to Remote Onboarding.)

8. Cutting Onboarding Short. Too many workplaces treat onboarding as a one-day or one-week event instead of an extended integration process. According to Ben Peterson, CEO of BambooHR, an HR technology company, “only 15 percent of companies continue onboarding after six months.”

 

How to Onboard New Hires: Best Practices

Effective onboarding goes beyond paperwork and orientations. It’s a structured process that equips new workers to succeed and fosters connections. Here are onboarding best practices:

Structured Onboarding Plan. A detailed onboarding plan provides clear milestones, expectations, and resources. It can include things like this:

• a clear owner of the orientation experience for that worker (e.g., the hiring manager, which is ideal, or an HR officer)
• onboarding schedule, including when it will begin (e.g., one week before the new worker starts) and how long it will last (e.g., one year)
• what impressions you’d like the new worker to have
• organization-wide orientation
• goals for the first day, week, month, and quarter
• key introductions
• role-specific training along with training milestones
• performance checkpoints
• a plan for how you’ll gather feedback on the onboarding process (e.g., surveys after the first month, six months, and one year).

Effective onboarding plans distinguish between key time periods: what should happen before day one (the worker’s first day), day one, and after day one. We address each in turn below

 

Onboarding Best Practices Before Day One

Here are things that should occur before the employee even shows up at work.

Set-Up. Be sure to set things up before they arrive. This can include things like the following:

• security logins & access keys
• desk
• computer and/or phone
• monitors, cables, & adaptors
• role-specific software & apps

Paperwork. Examples of things that should be completed before day one:

• employment agreement
• policies that require acknowledgement and sign-off
• payroll forms

Expectations. Give your new team member clarity about job responsibilities, performance goals, and success metrics. Explain how the role contributes to team and organizational objectives.

Essential Information. Here’s a list of the kinds of information you may want to share:

• CEO welcome letter
• Company history
• Company purpose, values, and vision
• Team members they’ll be working with (e.g., short bios)
• Calendar of key dates
• First-day schedule

 

Onboarding Best Practices on Day One

The first day sets the tone for everything that follows. Your onboarding plan should include essential activities that orient, engage, and connect your new colleague from the start.

“If a new employee doesn’t feel welcome or isn’t given direction on their first day, it’s an indicator their colleagues, manager, and company haven’t invested time to set the employee up for success. The employee, already feeling disengaged, may already decide it’s time to start looking for a new job. A strong onboarding program makes that much of a difference in an employee’s desire to stay at a job.” -Eric Mochnacz, Director of Operations at Red Clover HR

Buddy or Mentor. Pair new hires with a buddy or mentor who can answer questions informally. Best to go with a teammate and not a direct manager. They’ll feel more comfortable asking questions about the office, culture, and quirks of the team. The buddy can introduce the new person around and give a tour of the workplace.

The Team. Beyond HR, other workers, teams, and departments should also be involved in the onboarding process. The goal is to get the new hire to meet as many people as possible in their direct orbit. Ideally, the new hire will get some time with critical leaders across the organization, including brief introductions to the CEO and senior management team.

Culture and Values. Prepare an orientation deck that focuses on the organization’s purpose, values, vision, and culture, along with stories that illustrate them in action. Also include the organization’s strategy and structure (e.g., org chart). According to HROnBoard’s onboarding guide, “Only 32% of organizations communicate their core values to candidates and new employees.”

“New hires have a short window during which they are open to absorbing the culture of your company. If this opportunity is missed, they may never feel they fully belong as a member of your team…. set your employees up for success by showing them your company values, communication styles, and overall vision.” -David Aylor, CEO, David Aylor Law Offices

Connection and Belonging. Make sure new employees meet key team members early on and feel encouraged to participate in meetings and social events. Simple gestures like taking a new hire out to lunch on their first day go a long way in helping them feel welcomed. For remote workers, tools like buddy programs or cohort-based onboarding can help build relationships.

“The goal is for all newcomers to feel a sense of belonging from the moment they walk in the door: they take an office tour, have a meet-and-greet with our management team, and join a new hire ‘group chat’ so they can build rapport—and lasting relationships—with the people they are spending their first day with.” -Jessica Arias, Senior Director of People and Culture, OnPay

 

Onboarding Best Practices After Day One

Onboarding doesn’t end after day one. Continuing support and engagement are essential. Here are onboarding activities that should take place after the worker’s first day:

Learning and Development. Provide training resources and opportunities to grow from the start. Give them opportunities to contribute and grow (e.g., starter projects). Show a clear connection between their learning and their career progression as well as the organization’s success.

Career Development Clarity. Share required skill sets for senior roles as well as career development plans. This demonstrates that the organization is interested in and supportive of their personal and professional development.

Recognition and Celebrations. Recognizing and celebrating early achievements helps new workers feel valued and motivated. Public acknowledgment of their progress during the first 90 days sets a positive tone and tees up their ongoing contributions. Recognize new workers for what they’re able to do early on in their tenure with you. Show them that you’re following their progress and cheering them on. The best onboarding programs continue until the worker’s one-year anniversary—and celebrate that important milestone.

Ongoing Onboarding Improvement. Continuous onboarding improvement ensures your program stays effective and relevant. Schedule regular one-on-one check-ins—such as at one week, one month, and three months—to hear how the new hire is settling in. Collect feedback through surveys from new hires. Hold regular cross-department meetings to review what’s working, identify gaps, and refine the process over time.

 

Fun and Creative Ideas for How to Onboard New Hires

Injecting fun and creativity into onboarding can make the experience memorable and engaging—and really sets your organization apart in terms of employer branding and hiring pull. Here are some fun and creative onboarding ideas:

CEO & Manager Welcome Letters. Send handwritten notes from the CEO and the hiring manager to the new worker’s home. Here’s an example of a company letter:

“There’s work and there’s your life’s work.
The kind of work that has your fingerprints all over it.
The kind of work that you’d never compromise on….
People don’t come here to play it safe.
They come here to swim in the deep end.
They want their work to add up to something. Something big.
Something that couldn’t happen anywhere else.
Welcome to Apple.”

Gifts. Send a thoughtful gift to the employee’s home. Examples: flowers, bottle of champagne, personalized gift.

Creative Collage. Have new workers create a one-page collage of words and images that helps their colleagues get to know them personally (e.g., family, places they’ve lived, passions, hobbies, values).

Personal Operating Manuals. Have each person on their team create a Personal Operating Manual (POM) with tips on how to work with them. POMs can include things like your strengths, communication style, work schedule, interests, hobbies, weaknesses, frustrations, etc.

Scavenger Hunt. Create a fun scavenger hunt and have them follow clues and have to find things while meeting new people throughout the venture.

 

Conclusion: Onboarding New Hires Successfully

Effective onboarding is more than a checklist or orientation. It’s a strategic investment in your people—and your organization’s success. When done well, it strengthens engagement, fosters connection to colleagues and culture, boosts retention, and accelerates productivity.

Leaders who prioritize onboarding not only set new workers up for success but also build a foundation for long-term loyalty, high performance, and a thriving workplace. Investing time, thought, and resources into onboarding pays remarkable dividends.

Are you ready to up your onboarding game?

“Perhaps the single most important part of the recruiting process is onboarding. Nothing has a greater impact on a hire’s viability. Sure, you have to get the right people in the door. But if you don’t onboard them properly, they may never work out. This is where all companies, big and small, fail most consistently…. Take onboarding much more seriously, and you’ll be astounded by the results.” -Matt Blumberg, Startup CEO (Wiley, 2013)

 

Reflection & Action Questions

1. How strong is your organization’s onboarding program?
2. What improvements are needed?
3. And what will you do about it, starting today?

 

Tools for You

• Leadership Derailers Assessment to help you identify what’s inhibiting your leadership effectiveness
• Personal Values Exercise to help you determine and clarify what’s most important to you
• Traps Test (Common Traps of Living) to help you identify what’s inhibiting your happiness and quality of life

 

Related Articles & Resources on How to Onboard New Hires

• “Employee Onboarding Best Practices: The Ultimate Guide,” HR on Board, 2020.
• Konyefa Dickson, Rachel & Stephan Isaiah, Oyeinkorikiye. (2024). An Exploration Of Effective Onboarding On Employee Engagement And Retention In Work Organizations. Journal of Human Resource, 9. 1-20.
• “Why Leaders Should Create a Culture of Stewardship”
• “Great Leaders Develop People Intentionally”
• “How Great Leaders Reward, Recognize, and Celebrate People”
• “The Importance of Heart in Leadership”

 

Postscript: Quotations on Onboarding Best Practices

• “Employees who feel welcomed and supported are more likely to stay with the organization in the long run.” -Maria Ivanova, Founder, Mastermaid
• “Design people’s first experiences on purpose. First experiences with an organization are a vital, though often overlooked, component of instilling purpose. The first experiences we have with an idea, organization, or movement stay with us, so make sure that your employee onboarding and any and all stakeholder experiences begin with the story of why.” -Zach Mercurio, The Invisible Leader
• “An ideal first day at work should involve team introductions, an overview of expectations, and a sample project or two to help get them oriented with their role. They should also be given enough time to ask questions and gather resources—such as manuals or software—that will be necessary for meeting deadlines and performing tasks.” -Robert Leonard, CEO & Marketing Director, Aimvein

 

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Gregg Vanourek is a writer, teacher, and TEDx speaker on leadership and personal development. He is co-author of three books, including Triple Crown Leadership: Building Excellent, Ethical, and Enduring Organizations (a winner of the International Book Awards written with his father, Bob Vanourek) and LIFE Entrepreneurs (a manifesto for living with purpose and passion). Check out his Leadership Derailers Assessment or join his rapidly growing community. If you found value in this, please forward it to a friend. Every little bit helps!