Onboarding: What Is Onboarding and Why Is It Important?

Onboarding is a strategically important process for companies that is often underestimated. It goes far beyond the first days at a company and has a significant impact on employee retention and productivity. An effective onboarding process ensures that new employees not only get introduced to their tasks but also integrate well into the company culture and remain motivated in the long term. In this article, we explain what onboarding means, why it is so important, and how companies can successfully implement it.

Book a free demo

Deniz Bayraktaroglu, CEO & Product Expert, Bounti

December 20, 2024

Gruppe an Talenten für Onboarding Session

Key Points

Onboarding boosts employee retention: A well-structured onboarding process increases the likelihood of employees staying long-term and being motivated.
Faster productivity: Effective onboarding reduces onboarding time and boosts the productivity of new hires.
Cultural integration: Onboarding helps new employees familiarize themselves with company culture and create a sense of belonging.
Long-term investment: Onboarding is not a one-time process but a long-term commitment to employee development and retention.

The first day of work is exciting but also filled with uncertainty for many new employees. What can they expect? How will their team be? Will the integration process be smooth? A well-planned onboarding process can answer these questions and help new hires settle into the company quickly. But onboarding is more than just an introduction: it is a continuous process that contributes to making new employees productive, happy, and committed in the long run. In this article, you'll learn what onboarding means, why it’s so important, and how you can optimize this process.

What Is Onboarding?

Onboarding refers to the entire process of integrating a new employee into a company. It involves more than just administrative steps like filling out forms or setting up email accounts. Onboarding encompasses the entire period, from the initial contact to the successful integration of the employee into the company.

An effective onboarding process includes several phases:

Before the First Day: Administrative tasks are completed, and initial information about the company, the team, and workflows is provided.
First Day: A warm welcome, office tour, and introduction to the company culture are essential here.
First Weeks: The employee receives regular feedback and becomes integrated into daily workflows.
First 90 Days: This phase is crucial for long-term retention. Here, employees can take on more responsibility and advance their integration.
Long-Term Integration: Onboarding does not end after the first few months but is a continuous process of development and support.

Why Is Onboarding So Important?

Onboarding has a direct impact on the long-term satisfaction and productivity of employees. A structured onboarding process helps new hires integrate into the company successfully and quickly. Why is this important?

Increased Employee Retention: According to a Gallup study, 90% of employees decide whether they will stay long-term within the first six months. A well-thought-out onboarding process ensures that employees feel welcome from the beginning and understand that they play a valuable role in the company.

Boosting Productivity: Onboarding reduces the learning curve, helping new employees become productive faster. This not only relieves the team but also ensures a quicker return on investment in the new employee.

Cultural Integration: Onboarding offers a great opportunity to introduce new employees to the company's values. They learn how the company operates and which behaviors and work practices are valued.