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The Importance of Effective Onboarding: Best Practices and the Benefits of Outsourcing to Professionals

When a new hire walks through the door of your company, it’s a pivotal moment. You’ve spent energy and money finding the right person, and now it’s time to ensure they thrive in their new role. Effective onboarding is more than just paperwork and a tour of the office (or virtual meetups these days); it’s about setting the stage for long-term success. A well-executed onboarding plan can make the difference between a new employee becoming a productive, engaged team member or struggling to fit into the company culture and job requirements.

But creating an effective onboarding program is no small task, and organizations don’t always get it right. A survey from Gallup shows:

  • Only 12% of U.S. employees say their company does a good job with onboarding.
  • 20% of U.S. workers say they either received poor onboarding or none at all.
  • Just 29% of new hires in the U.S. say they feel fully prepared and supported to excel in their role after onboarding.

Successful onboarding requires careful planning, clear communication, and alignment with company values and goals. Some companies attempt to tackle onboarding on their own, but many find that outsourcing the task to professional instructional designers and learning & development (L&D) specialists can be a game-changer. Let’s break down why effective onboarding matters, the best practices for creating an onboarding plan, and how working with experts can elevate your onboarding process.

Smiling restaurant workers. Caption reads: "An effective onboarding strategy is one of the most powerful assets a company can have since it has positive impacts on all aspects of the business." - Tara Milburn, Founder & CEO, Ethical Swag

Why Effective Onboarding Matters

First impressions are crucial—this is true not only for clients or customers but also for new employees. A well-structured onboarding process can have a profound impact on a new hire’s overall experience and their view of the company. Here’s why onboarding is so important:

  1. Increased Retention: Research from the Society for Human Resource Management (SHRM) shows that new hires who participate in effective orientation programs are 69% more likely to stay with their employer for up to three years. Onboarding helps new hires feel engaged and valued, which can lead to better retention rates.
  2. Faster Productivity: The same SHRM study found that organizations with standard onboarding processes experience a 50% increase in productivity. A comprehensive onboarding plan helps new employees get up to speed faster. By providing them with the tools, resources, and knowledge they need from the start, they can contribute to the team sooner.
  3. Stronger Culture Fit: Onboarding is an opportunity to introduce new employees to your company’s culture, mission, and values. A well-organized plan helps them understand how they fit into the bigger picture and why their role matters. A Deloitte study found that employees who feel like they belong at work see a 56% improvement in their job performance, so a good culture fit is as important as productivity.
  4. Higher Employee Engagement: Employees who feel supported and confident in their roles are more likely to be engaged. According to Gallup, 70% of employees with exceptional onboarding experiences say they have “the best possible job”. Effective onboarding sets a foundation for ongoing professional development and growth.

Smiling restaurant workers. Caption reads: "A successful onboarding strategy will reduce attrition and increase employee engagement, both of which impact your customers’ satisfaction as well as your bottom line." -Meighan Newhouse, SVP Transformation and Enablement, 10Pearls

Best Practices for Creating an Effective Onboarding Plan

So, what does an effective onboarding plan look like? It’s not a one-size-fits-all approach, but there are several best practices that apply universally. Whether you’re creating an onboarding plan for a small team or a large organization, these principles will ensure your new hires start off on the right foot.

1. Start Before Day One

Onboarding should begin before the new hire even steps into the office (or logs in from home). Preboarding includes sending welcome emails, completing any necessary paperwork, and providing them with a rundown of what to expect. This makes their first day less stressful and helps them feel prepared.

2. Create a Structured Plan with Clear Objectives

Effective onboarding should have specific, measurable goals for the first few weeks (or even months). Define what success looks like and break it down into manageable milestones. For example, in the first week, a new employee should be familiar with the company’s values, have access to all the necessary tools, and meet key team members. By the end of their first month, they should understand their role clearly and be able to contribute meaningfully.

3. Integrate Company Culture Early

Onboarding is the perfect time to introduce your company culture. Walk through your organization’s mission, vision, and values. Share stories about the company’s history and how employees contribute to its overall success. If your culture is collaborative, make sure the new hire knows how the team interacts and communicates.

4. Offer Training and Development

New employees need training that goes beyond how to use the internal software or complete basic tasks. Develop a comprehensive training plan that includes the necessary hard skills (technical tools, processes, etc.) and soft skills (communication, teamwork, leadership). This helps employees feel empowered in their role and gives them the resources they need to excel.

5. Provide a Mentorship or Buddy System

Pairing a new employee with a mentor or buddy helps them get acclimated faster. A peer mentor can guide them through the ins and outs of their role, answer questions, and help them integrate into the team and company culture.

6. Ongoing Check-ins and Feedback

Onboarding should never be a “set it and forget it” process. Regular check-ins with the new hire and their manager are crucial to ensure they’re progressing. Ask for feedback on the onboarding process and be open to making adjustments. This also shows the employee that their growth is important to you.

7. Evaluate and Improve the Process

After onboarding a few employees, take a step back and evaluate how well the program is working. Are there common challenges that new hires face? Are there areas for improvement? Continuously refining the process will help ensure it remains relevant and effective.

Person sitting in office, looking at monitor showing several people in a virtual meeting. Caption reads: “One of the biggest benefits of outsourcing training is that it can save time and energy so that you and your employees can focus on other tasks that are essential for success. Not only that, outsourcing training can help you leverage the expertise of professionals outside of your organization who may have experience that in-house trainers lack.” -Danielle Fallon-O’Leary, Content Manager, Lightning Media Partners

Why Outsourcing Onboarding to Professionals Is a Great Option

Developing and implementing a thorough onboarding process can be overwhelming, especially for small businesses or companies with limited HR resources. This is where outsourcing to professional instructional designers and L&D specialists comes into play. These experts bring several benefits to the table:

  1. Expertise in Learning Design: Instructional designers know how to create engaging, learner-centered training experiences. They understand how people learn and can build onboarding programs that cater to different learning styles and paces.
  2. Time and Resource Efficiency: Designing an effective onboarding plan takes time—time that could be better spent on other critical business operations. Outsourcing this task allows internal teams to focus on what they do best while leaving the onboarding design to professionals.
  3. Scalability: As your company grows, so do your onboarding needs. Professional L&D specialists can create scalable onboarding programs that can be easily adapted as your company expands, ensuring that all new hires receive a consistent and high-quality experience.
  4. Data-Driven Insights: Professional L&D experts track and measure the effectiveness of onboarding programs. They use this data to refine the process and make improvements, ensuring that your onboarding efforts are continuously optimized.
  5. Employee Retention: When employees feel like they’ve received comprehensive, thoughtful onboarding, they’re more likely to stay with the company. Outsourcing onboarding to experts ensures that your process is up to industry standards and engages new hires in meaningful ways.

Real-World Scenarios: The Good and the Bad of Onboarding

Let’s dive into two real-world scenarios to see the impact that effective onboarding can have on a company’s success—or lack thereof.

Scenario 1: The Company with No Onboarding Plan—FlashTech Solutions

Blue-tinted cityscape with white and light blue digital cloud over it. Caption reads: “Company: FlashTech Solutions. Industry: Cloud-based Software. FlashTech Solutions is a mid-sized tech company that specializes in cloud-based software for small businesses. With a rapidly growing client base, they have recently expanded their team to meet demand but have not yet developed a formal onboarding process for new hires. Onboarding Plan: Basic introduction - HR paperwork and a casual office tour; No structured training on software or products is available; No introduction to company culture and values is offered; New employees are handed their tasks and expected to figure things out on their own. What Went Wrong: Employee Engagement: Low. New employees feel unsupported and are confused about company processes. Many feel that their roles were not clearly defined during their onboarding, leading to a lack of confidence in their work. Employee Retention: Many employees leave within their first year, citing lack of proper onboarding and clarity around job expectations as a primary reason. Customer Satisfaction: Customer satisfaction is directly impacted. New hires struggle to learn their roles, making frequent mistakes in client-facing tasks, leading to frustrated customers. Results: Turnover Rate: 35% higher than the industry average. Employee Satisfaction: Only 50% of employees report satisfaction with their onboarding experience, many stating that they didn’t feel prepared for their roles. Customer Satisfaction: Service quality drops by 20% due to new hires not fully understanding product features and processes. Revenue Impact: The increased turnover and missed client deadlines result in lost revenue and a diminished reputation in the market.”

 
Scenario 2: The Company with a Well-Designed Onboarding Plan—EcoGrow Enterprises

Green seedlings at increasing levels of growth in dark brown dirt. Caption reads: “Company: EcoGrow Enterprises. Industry: Sustainable Agriculture. Company Overview: EcoGrow Enterprises is a leading company in the sustainable agriculture sector, providing solutions to farmers and growers to help them optimize resources and reduce environmental impact. Onboarding Plan: Comprehensive, multi-step onboarding process for new hires and seasonal workers. Structured Process ensures everyone understands company values, products, and their role in their organization. They have a reputation for being a top employer in their industry and emphasize employee growth and development. What Went Right: EcoGrow has a comprehensive, multi-step onboarding process designed for both new hires and seasonal workers. The process is structured to ensure that every employee understands the company’s values, products, and role within the organization: Structured Training Program: New hires undergo a two-week training program that covers the company’s history, mission, values, and an in-depth look at the sustainable farming solutions they provide. They also receive hands-on training with the company’s products; Mentorship Program: Every new employee is paired with a mentor who helps them navigate their first few months at the company. The mentorship program encourages relationship-building and ensures that new hires feel supported and connected to their team; Integration into Company Culture: EcoGrow’s onboarding program incorporates team-building exercises, social events, and an introduction to the company’s sustainability initiatives. Employees quickly understand the company’s mission and how their work contributes to broader goals. Outcome: Employee Retention: Employee turnover is 40% lower than the industry average. New hires who complete the onboarding process feel much more confident and prepared in their roles, leading to better retention; Employee Satisfaction: 85% of employees report a high level of satisfaction with the onboarding process, with many praising the clear communication, hands-on training, and company culture integration; Customer Satisfaction: Customer satisfaction has increased by 15%, as well-trained and confident employees are able to provide better service and more accurate solutions to clients; Revenue Impact: EcoGrow’s improved customer satisfaction has led to a 25% increase in repeat business and positive word-of-mouth referrals, directly impacting the company’s bottom line.”

Final Thoughts: Invest in Onboarding for Long-Term Success

Effective onboarding is more than just a “first-day checklist”—it’s an investment in the long-term success of both the employee and the company. When done right, it can lead to higher employee engagement, better retention rates, and improved productivity. Whether you’re creating your own onboarding program or outsourcing to instructional design professionals, making this a priority will pay off. After all, a great start is the best way to ensure your new hires will stay engaged, motivated, and ready to contribute to your company’s goals.

 
Related Blogs

Modern Training: The Key to Employee engagement and Company Growth

More Than Policies: Craft a Handbook that Engages and Protects

Engagement Matters: Turning the Tide on Workforce Discontent

 
Resources

Bordeaux, Colleen, Betsy Grace, and Naina Sabherwal. “Elevating the Workforce Experience: The Belonging Relationship.” Deloitte. 11/23/21. Accessed 2/11/25. https://www2.deloitte.com/us/en/blog/human-capital-blog/2021/what-is-belonging-in-the-workplace.html

Fallon-O’Leary, Danielle. “Outsourcing Employee Training: Here’s What to Know.” U.S. Chamber of Commerce. 8/22/23. Accessed 2/10/25. https://www.uschamber.com/co/run/human-resources/outsourcing-employee-training-pros-and-cons

Hirsch, Arlene S. “Don’t Underestimate the Importance of Good Onboarding.” SHRM. 8/10/17. Accessed 2/11/25. https://www.shrm.org/topics-tools/news/talent-acquisition/dont-underestimate-importance-good-onboarding

Milburn, Tara. “Why Effective Onboarding Is Critical to Employee Retention.” 12/2/22. Accessed 2/10/25. https://www.forbes.com/councils/forbesbusinesscouncil/2022/12/02/why-effective-onboarding-is-critical-to-employee-retention

Newhouse, Meighan. “Why Effective Onboarding Is More Important Than Ever.” Forbes. 12/2/20. Accessed 2/10/25. https://www.forbes.com/councils/forbeshumanresourcescouncil/2020/12/02/why-effective-onboarding-is-more-important-than-ever

Sundaram, Dipak and Niraj Patel. “Essential Ingredients for an Effective Onboarding Program.” 1/31/19. Accessed 2/11/25. https://www.gallup.com/workplace/246242/essential-ingredients-effective-onboarding-program.aspx

Wetherell, Emily and Bailey Nelson. “8 Practical Tips for Leaders for a Better Onboarding Process.” 8/12/21. Accessed 2/11/25. https://www.gallup.com/workplace/353096/practical-tips-leaders-better-onboarding-process.aspx

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