Definition Onboarding: What It Is & Why It Matters Now

In today’s competitive job market, attracting top talent is only half the battle. Retaining those employees and ensuring they quickly become productive contributors is where the real challenge lies. That’s where effective onboarding comes in, setting the stage for a successful and long-lasting employee-employer relationship.

What is Onboarding?

Onboarding is the process of integrating a new employee into an organization. It starts from the moment the job offer is accepted and continues until the new hire is fully acclimated to their role, the company culture, and the team dynamics. It’s more than just a stack of paperwork and a quick tour; it’s a strategic and comprehensive approach to employee integration.

According to Merriam-Webster, onboarding is “the act or process of orienting and training a new employee,” with good onboarding leading to higher engagement and retention. The Association for Talent Development (ATD) emphasizes that onboarding should equip new employees with the knowledge and skills they need for success, extending beyond a single-day orientation to encompass the employee’s first year.

A typical onboarding process includes:

Pre-boarding: Sending welcome materials and completing paperwork before the first day.
Orientation: Providing an overview of the company, culture, and policies on the first day.
Training: Equipping the employee with the specific skills and knowledge needed for their role.
Ongoing Development: Providing continuous support and opportunities for growth throughout the first year.

Why Onboarding Matters Now More Than Ever

Several factors contribute to the increased importance of effective onboarding:

Employee Retention: In 2024, the average employee turnover rate across all industries was 3.4%, according to the U.S. Bureau of Labor Statistics. Effective onboarding can significantly improve employee retention. A study showed that 69% of employees are more likely to stay with a company for three years if they experience great onboarding.
Employee Engagement: Employee engagement in the U.S. hit an 11-year low in early 2024. Onboarding sets the tone for an employee’s entire experience, influencing their engagement and motivation. Employees with a better onboarding experience are reportedly 2.6 times more likely to feel satisfied at work.
Productivity: It typically takes around eight months for a new hire to reach full productivity. A structured onboarding program can significantly shorten this timeframe, allowing employees to contribute more quickly and effectively. In fact, organizations with a standard onboarding process can experience 50% greater new hire productivity.
Remote and Hybrid Work: With the rise of remote and hybrid work models, onboarding has become even more critical. Remote employees need a structured and engaging onboarding process to feel connected to the company and their colleagues.
Cost of Turnover: The cost of employee turnover is substantial, with estimates ranging from 100% to 300% of the replaced employee’s salary. Investing in effective onboarding can reduce turnover and save the company significant costs.

The High Cost of Poor Onboarding

Failing to prioritize onboarding can have serious consequences:

Increased Turnover: Up to 20% of employee turnover happens within the first 45 days. A bad onboarding experience can instill doubts about the role and company culture, leading to early departures.
Decreased Productivity: When employees feel untrained or unsupported, their productivity suffers. A lack of clear guidelines and expectations can hinder their ability to perform their jobs effectively.
Negative Impact on Company Culture: Poor onboarding can create a negative impression of the company culture, affecting morale and engagement among all employees.
Financial Losses: The costs associated with turnover, reduced productivity, and damaged reputation can significantly impact a company’s bottom line. In the U.S. and U.K., an estimated $37 billion is spent annually to keep unproductive employees who don’t understand their job.

Key Elements of an Effective Onboarding Process

A successful onboarding program should include the following elements:

Clear Communication: Providing new hires with clear expectations, goals, and responsibilities from the outset.
Comprehensive Training: Equipping employees with the knowledge and skills they need to perform their jobs effectively.
Social Integration: Facilitating connections with colleagues and creating a sense of belonging within the team.
Cultural Immersion: Introducing employees to the company’s values, mission, and culture.
Ongoing Support: Providing continuous support and feedback throughout the first year.
Feedback Mechanisms: Regularly soliciting feedback from new hires to identify areas for improvement in the onboarding process.

Onboarding vs. Orientation vs. Training

It’s important to distinguish between onboarding, orientation, and training:

Orientation is typically a short, introductory session that covers basic company information, policies, and procedures.
Training focuses on developing the specific skills and knowledge needed for the job role.
Onboarding is a more comprehensive and ongoing process that encompasses both orientation and training, as well as social integration and cultural immersion.

While orientation and training are important components of onboarding, they are not a substitute for a well-designed onboarding program.

How One Course Addresses This

One Course, as an AI-powered course builder and LMS, can play a vital role in creating and managing effective onboarding programs.

AI-Powered Course Creation: Tools like One Course’s builder can accelerate the development of engaging onboarding materials, including videos, interactive modules, and assessments.
SCORM Export: You can export SCORM packages directly from One Course for compliance training and seamless integration with other LMS platforms.
Learner Management: With proper learner management, you can track new hire progress, identify knowledge gaps, and provide personalized support.
Centralized Platform: One Course provides a centralized platform for managing all aspects of the onboarding process, from delivering training materials to tracking employee progress.

Feature Comparison: One Course vs. Other Platforms

Feature	One Course	TalentLMS	Articulate 360
AI Course Builder	Yes	Yes (TalentCraft)	Yes (AI Assistant)
SCORM Export	Yes	Yes	Yes
Automated Employee Training	Yes	Yes (Automations)	No
Onboarding Workflows	Yes	Limited	No
User Rating	4.8/5 stars	4.6/5 stars	N/A
Free Tier	Yes (Free Forever)	Yes	Yes (30-day trial)
Starting Price (Paid Plan)	Monthly Subscription	$149/month (up to 40 users)	$1,199/year per user

Note: User ratings can fluctuate. Verify directly with vendor websites.

TalentLMS also offers a free plan, but its AI content assistance and thumbnails are marked as a “PROMO” feature, potentially indicating limited availability in the future. Articulate 360’s pricing starts at $1,199 annually per user, with different tiers for standard and AI-enhanced plans.

Conclusion

In today’s competitive business environment, effective onboarding is no longer optional; it’s a strategic imperative. By prioritizing onboarding, companies can improve employee retention, boost engagement, and drive productivity. Failing to invest in onboarding can lead to increased turnover, decreased productivity, and significant financial losses. Embrace the power of a well-designed onboarding program to set your new hires up for success and create a thriving company culture.

If you’re ready to simplify your course development and create a more effective onboarding experience, try One Course free.

Definition Onboarding: What It Is & Why It Matters Now