Why You Can’t Afford to Overlook Onboarding: Employee Onboarding Best Practices That Improve Retention

Onboarding seems to be the one area where even high-performing companies are willing to admit: “We could be doing better.” As someone who’s spent years helping businesses improve their onboarding programs, I can confidently say that the risks of overlooking onboarding are greater than most leaders realize.

Let’s break down why investing in onboarding isn’t just a “nice to have”…it’s essential to business performance.

1. Poor onboarding is bleeding your budget

According to SHRM, it costs 30% to 50% of an employee’s salary to replace them. Now layer in this stat: 33% of new hires leave within the first three months. That’s a major financial hit, especially for growing organizations.

Many companies are starting to track the cost of employee turnover more carefully, but very few are tracking new hire turnover. 

Doing so shines a light on just how critical a well-structured onboarding program is. Even when employees don’t quit, there’s a hidden cost that’s often overlooked: low engagement.

2. A bad onboarding experience doesn’t have to end in resignation to do damage.

Think about it: if a new hire has a rocky start, they might not leave right away, but their level of commitment and motivation will take a hit. They’re not raising their hand in meetings, going the extra mile, or taking initiative.

That matters, because studies show that great onboarding increases employee engagement by up to 70%. And engaged employees are more productive, more committed, and more aligned with business outcomes.

3. You don’t get a second chance to make a first impression

This is where things get fascinating. Ever heard of imprinting? It’s the brain’s natural response to new stimuli, a survival mechanism hardwired into us. When someone starts a new job, their brain is forming rapid impressions about the organization, their team, and their role.

So when onboarding is chaotic…no welcome, no clear structure, no working equipment on day one, new hires are already internalizing beliefs like:

• “This place is disorganized”

• “No one really cares if I succeed”

• “Is this company even stable?”

Once these beliefs take hold, they’re hard to undo.

What Kind of Workforce Are You Building?

Sure, most new hires will stick around. But ask yourself this:

Do you want a workforce that’s engaged, proactive, and committed, OR one that’s disengaged and doing the bare minimum?

That difference starts with onboarding.

So, how do you improve your onboarding program?

It starts by acknowledging that onboarding needs care, upkeep and intentional design, just like any other part of the employee lifecycle and the business. Here are four practical strategies to get started:

1. Survey your employees and people leaders

You don’t have to guess what’s working and what’s not. Ask.
Gather feedback from new hires who joined in the last 18 to 24 months, and from the people leaders who supported their onboarding. Their insights can highlight gaps you might not see from the center. Look for trends: where are people feeling lost, unsupported, or unprepared?

2. Dedicate resources to improving onboarding

Too often, onboarding is seen as a checklist item rather than a critical phase of engagement. Treat it like the strategic initiative it is. Assign ownership. Allocate time, tools, and budget. Whether it’s updating materials, rethinking the timeline, or training managers, onboarding needs real investment to create real impact.

3. Work cross-functionally to build buy-in

HR shouldn’t go it alone. Onboarding is most effective when multiple departments contribute, including IT, Facilities, Payroll, Legal, and most importantly, people leaders, and the new hire’s own team. Involve key stakeholders early so everyone understands their role in creating a smooth, welcoming experience.

4. Introduce proven technology to support new hires

If you’re looking for a smart technology that answers all your new hires’ questions based on your company’s own information, it’s worth checking out First30’s Onboarding Buddy platform. There’s no IT headaches or set-up fees. Onboarding Buddy integrates seamlessly with your HRIS.

Book time to meet with a member of our team!