If You're Not Onboarding... You're Outboarding

During a recent podcast we were part of, we reported on some interesting statistics from ADP, Ceridian and other HR providers in Canada, that up to 1 in 5 new hire employees are leaving within the first 90 days of their arrival.  The suggested cause of this 20% rate is a poor onboarding experience, but that leaves some

companies scratching their heads as they are quite proud of the onboarding process, they have in place.  So, something isn’t working.

Another statistic we reported, this time from Bamboo HR and Talent LMS, indicated that despite high levels of satisfaction among 73% of new hires when it comes to their onboarding process, 39% of new employees had second thoughts about their new roles during onboarding.  These doubts about their jobs come as the majority of surveyed employees identified various challenges in adjusting to the company's culture, values, or work style emerging as the top barrier.

In today’s competitive and fast-paced work environment, businesses are investing heavily in recruitment—but far too many stop short once the hiring contract is signed. That’s a costly mistake. The moment an employee accepts a job offer is not the end of the hiring process—it’s the beginning of onboarding, a critical phase that sets the tone for everything that follows.  But for those that are performing an onboarding process, the heads remain itchy.

The cost of losing an employee can range from 50% to 200% of their annual salary, when you factor in recruitment and hiring expenses, training and onboarding time, lost productivity and team disruption, knowledge drain and impact on client relationships.  And for small or medium sized businesses, even one departure can throw off service levels, morale, and momentum.

What Is Onboarding?

Onboarding is more than a brief orientation or a first-day HR checklist.  It is not a 10-minute walk around the office or the plant pointing out where the copier is, the eye-wash station and the lunch area.

It is the structured process of integrating new employees into the culture, operations, and community of an organization. Done well, it helps new hires feel informed, supported, and connected. Done poorly—or not at all—it leads to confusion, disengagement, and early exits.

 The High Cost of Getting It Wrong: Especially for Small Businesses

Small businesses often feel they can skip formal onboarding. Resources are tight, teams are lean, and there’s an assumption that new employees will "figure it out." But here’s the hard truth: many small businesses lose great employees within the

first few months simply because those new hires didn’t get the guidance, clarity, or support they needed to succeed.

Unlike large corporations that can absorb turnover, every lost employee in a small business can leave a big gap—in productivity, morale, and customer experience. When a new hire walks into a chaotic environment with no structure, little direction, and unclear expectations, it sends a loud message: you’re on your own.  And that message drives people out the door. 

Now, for many small business owners, the thought of implementing onboarding process is a non-starter as it immediately sounds complex, expensive and a misdirection of focus… but it doesn’t have to be.

Common Small Business Missteps:

• Assuming "training on the fly" is enough

• Failing to introduce new hires to the team and company culture

• Not clearly defining roles, responsibilities, or expectations

• Overloading new staff without providing tools or context

• Forgetting that the first impression goes both ways

And the result? Good people leave before they ever get a chance to contribute.

The ROI of Effective Onboarding

Research shows that companies with strong onboarding processes improve new hire retention by 82% and productivity by over 70%. That’s not just a morale boost—that’s a bottom-line impact.

 How Onboarding Boosts Retention:

·        Reduces Early Turnover: Up to 20% of new hires leave within the first 45 days. A structured onboarding program addresses the common causes: lack of clarity, poor communication, and absence of support.

·        Builds Connection and Belonging: When employees feel welcomed and included from day one, they're more likely to stay and engage.

·        Clarifies Roles and Expectations: Onboarding provides a framework for setting clear goals and outlining responsibilities—critical for confidence and long-term success.

·        Demonstrates Commitment: A smooth, thoughtful onboarding experience sends a clear message: “We’re invested in you.” That’s a powerful motivator for retention.

Onboarding Doesn’t Need to Be Complex or Expensive

One of the biggest myths about onboarding is that it requires a huge budget or fancy software. Not true. What matters most is intentionality, not bells and whistles. Even a lean, people-focused process can be incredibly effective.

Here’s what a simple, cost-effective onboarding plan might include:

·        A welcome email from the founder, senior leader or direct manager

·        A printed or digital "Getting Started" guide with key contacts, policies, and team info

·        A clear 30-60-90-day plan with goals, training, and check-ins

·        A buddy system to pair new hires with experienced employees

·        Weekly one-on-one meetings to provide feedback and support

·        A team lunch or coffee chat to build early rapport

Introducing and Demonstrating Culture is Critical

Every workplace has its own rhythm, unwritten rules, and values. Onboarding is the opportunity to clearly articulate that culture to newcomers—what you expect of them, how decisions are made, how communication flows, and where to go for

support. Without guidance, employees are left to guess, which often leads to misalignment and frustration.

Beyond the First Week

Onboarding doesn’t end after a welcome lunch or a few days of shadowing. The most successful programs stretch over 30, 60, or even 90 days, with regular check-ins, mentoring, training milestones, and goal setting. Ongoing support ensures that employees grow into their roles with confidence and clarity.

It’s Everyone’s Job

HR may coordinate onboarding, but it’s not a solo act. Managers, team members, IT, and leadership all play roles in welcoming and integrating new employees. Collaborative onboarding creates community and breaks down silos from the start.

We Get It!... But We’re Doing It!...  What Seems To Be The Problem?

Several, predictable dynamics during the onboarding process are what appear to be behind that 20% to 39% that are leaving or thinking about it in their first 90 days with your company.  And, not surprisingly, they’re all human.  Usually, it’s the delivery, the follow up and, the age demographics of the audience. 

It’s About The Delivery: Onboarding programs that are highly automated (read this PowerPoint deck and fill out this questionnaire) are efficient but hardly the way to convey the company culture and purpose.  This disconnected approach creates the disconnected individual.

Now for those that conduct more of a human/face to face program, it’s critical that the style of the deliverer truly emulates the culture, enthusiasm and opportunity of the company the new recruit has joined.  The deliverer is the most important example of how your organization initially looks, feels and supports a new employee.  Ideally, it’s a senior leader or an integral, visible part of the process. 

Think of them as an ambassador for your organization.  It is NOT a soon-to-be co-worker who shows you how to work the cash register and where the washrooms are, just before one’s shift starts.

It’s About The Follow Up: “Once and Done” is an approach sure you make your new recruit feel forgotten.  Regular check-ins at the 30-, 60- and 90-day windows, along with mentoring, training milestones, and goal setting are what ensures that employees grow into their roles with confidence and clarity. 

Plus, it gives managers some viewable candidate experience to provide meaningful feedback and coaching.

It’s About The Age Demographics:  Today’s workforce is multi-generational and their reactions to onboarding and their need to identify with a company’s culture and purpose are quite different.  It is critical that your onboarding process recognizes these generational differences and delivers messaging that resonates with each of them.  Here are some generational tips to help design your onboarding program approach:

GenZ (born 1997–2012):  High turnover risk.  Known for job-hopping.  Seeking fast growth, purpose-driven work, and flexibility. If they don’t see a clear path within 6–12 months, they’re more likely to leave.  Looking for structure, feedback, strong onboarding, mentorship, and early engagement. 

They expect onboarding to include easy access to tools, virtual resources, and communication platforms.  Clearly a challenge for retail and food service organization recruiting young employees and the critical value of effective onboarding.  And likely the drivers of that 20% leaving in the first 90 days in the role.

Millennials (born ~1981–1996):  Moderate to high turnover risk.  Currently the largest generation in the workforce.  They value development and flexibility.  Many leave if they feel stagnation or lack of support. 

Often juggling career, family, and financial goals—onboarding that acknowledges work-life balance and growth matters.  Use onboarding to highlight learning opportunities, flexibility, and team culture.

Gen X (born ~1965–1980):  Low to moderate turnover risk.  Generally, more stable and experienced—but can feel overlooked in fast-paced workplaces.  Prefer clarity and autonomy: Good onboarding should respect their experience while clearly outlining processes and performance expectations. 

May value stability and benefits over flashy perks.  Use onboarding to build trust and communicate long-term opportunities.

Baby Boomers (born ~1946–1964):  Low turnover risk—but high value.  Many Boomers are delaying retirement, especially in leadership or advisory roles.  May need adapted onboarding for hybrid or digital tools. 

Often deeply committed if they feel respected and included.  Onboarding should recognize their experience, clearly show how they fit into modern teams, and avoid making them feel like "outsiders."

The Bottom Line

In perspective, if you invest in a new vehicle costing between $60,000 and $100,000 you usually make sure to ensure it it is well looked after from the beginning and maintained regularly. 

That’s because you want to be able to depend on it and know that it will perform as expected.  So, why wouldn’t you do the same with your investment in people?

Onboarding is not a something you give an already exhausted floor supervisor to do when an unexpected new hire arrives.  Onboarding is one of the most powerful tools your organization has to drive retention, performance, and culture.  And it doesn’t have to be complicated or expensive. Even a simple, thoughtful approach can deliver big results… especially for small businesses, where every team member counts.

Cambiara Group – July 2025