People & Leadership

The ultimate employee onboarding guide

Shaping a workforce that fully embraces your company mission starts with captivating the talent you’ve worked so hard to recruit. A solid employee onboarding experience is the first step in this process.

For a small or medium-sized enterprise (SME), employee onboarding may seem like an admin chore.

But a strong onboarding process can hugely impact staff retention and productivity, making it a critical performance driver in your business.

Despite this, a high percentage of firms still have poor onboarding processes.

Only a third receive strong executive support for onboarding initiatives, suggesting there’s a big opportunity to improve them and gain competitive advantage.

This advantage could be even greater in SMEs, where the impacts of onboarding experiences are amplified due to the smaller number of employees.

Let’s delve into how you can improve the onboarding process to boost your business goals.

Here’s what we’ll cover:

What is the employee onboarding process?

Employee onboarding is the process of introducing a new recruit to your business.

It helps them understand how the business works, your culture, purpose, environment, and working methods.

Onboarding should help joiners feel a sense of belonging—welcomed, valued, and ready for success.

But it’s also the first step in protecting your investment in that employee and driving a high-performing workplace.

Employees who feel integrated and aligned with your purpose from day one are more likely to stay long term, and to be as engaged and productive as possible.

A robust onboarding process for SMEs can also:

• Enhance your brand.
• Attract top talent.
• Strengthen your culture.
• Improve staff well-being.

So rather than viewing onboarding as just a compliance formality or administrative checklist, treat it as a strategy to gain a competitive advantage.

10 steps to cover during the onboarding process

A good onboarding experience doesn’t start on day one. It begins the moment your offer is accepted—and it should continue long after your new hire’s first week.

Here’s how to build an onboarding journey that works for your business and your people.

1. Prepare before they arrive: Set up pre-boarding

Start strong by getting everything ready before your new hire’s first day:

• Make sure their manager is briefed and has a plan for their initial weeks.
• Send a warm message or welcome gift to build excitement.
• Appoint a buddy for informal support, social introductions and day-to-day advice. The buddy should be someone outside the starter’s direct team but close enough to offer helpful context.
• Tell the wider team there’s a new person coming and make space for a positive first impression.
• Get the new person’s contract and paperwork sorted early—this prepares you for point 2.
• Set up their desk, tools and access.

2. Cover paperwork, processes, and benefits early

On or before the employee’s first day, provide them with a written offer letter outlining key details such as job title, compensation, working hours, and start date.

If your company uses an employment agreement, include that as well.

“While not always legally required, having a written offer helps set clear expectations, reinforce company values, and promote transparency in the working relationship,” says Anthony Sutton, director of Cream HR.

As soon as your new hire starts, share your employee handbook if you have one, as well as information about the wider benefits package you offer.

That way, they can learn more about your company processes, policies, and rewards in their own time.

With digital copies it’s easier to store them and refer back later.

3. Help them connect: set up introductions

Anthony says introducing newcomers to your departments helps them understand how each function works in relation to the others, and how their role fits.

To support a high-performance culture, he recommends using Gallup’s ’12 points for worker engagement’, especially the points about helping employees understand:

• What they are here for.
• What tools and equipment will help them succeed.
• What opportunities they have to fulfil their role.

Gallup also stresses the importance of workers receiving praise, recognition, care, and encouragement to develop.

So, move beyond policies and paperwork to help new colleagues feel excited about the role.

Make the conversations personal to help the new employee feel valued and integrated.

Arrange informal meet-and-greets and encourage casual chats like coffee breaks or team lunches.

4. Provide a clear orientation and role overview

Start with a workplace safety orientation, whether they’re in the office or working remotely.

Then clearly explain their role, responsibilities, and where they can find support or resources.

This helps reduce confusion and gives them confidence in their day-to-day tasks.

Setting clear expectations early is key to building a strong foundation.

5. Learn what makes this person different

“Another Gallup point is about whether the manager is genuinely interested in the employee’s professional development and as a person,” says Anthony.

“Onboarding provides a great opportunity to show that interest. I also always ask the recruit if they know their preferred learning style – visual, auditory, reading, writing, or kinesthetic.”

“This helps you adapt your support to meet their needs.”

Ask about their career goals and interests to show you care about more than just output.

Frequent check-ins during the first year are a great way to gather their thoughts on what’s working and what isn’t.

6. Create a structure for their first weeks

Don’t leave them guessing.

Map out their first few weeks with clear goals, training sessions, and meetings.

Schedule daily check-ins for week one, then taper to weekly.

Share a three-month plan with achievable milestones, ideally based on projects that offer early wins.

Use feedback from the check-ins to spot issues early and keep progress on track.

7. Give them the tools to grow

Don’t wait until month six to talk about training.

Start early by showing how they can develop and progress.

Introduce learning platforms, mentorships, and growth paths. Involve them in cross-functional projects where they can learn new skills.

This links their work to long-term goals, helping them stay engaged and motivated.

8. Use technology to support the process

HR software can take a lot off your plate.

Automate admin tasks like setting up systems access, sending contracts and assigning tasks.

Use cloud tools to share orientation content and track progress.

Set up digital employee files for easy access. Some platforms include chatbots for FAQs and self-service.

This frees up time for meaningful conversations.

9. Keep culture front and center

Don’t assume new hires will absorb your culture on their own.

Be explicit about your values and working style.

Use storytelling, team meetings, and real-life examples to bring your culture to life.

Show how teams collaborate, how people are recognized, and how feedback works.

Make your values real, not just words on a wall.

10. Keep improving your onboarding process

Great onboarding evolves.

Send short surveys at key points—15, 30, 60 and 90 days. Ask what helped and what didn’t.

Compare with other new hires’ responses and use the input to improve the process.

Track metrics like time to productivity, engagement and employee retention.

If someone changes roles within the company, that is a valid case for onboarding again.

It can be a streamlined version of first-timer onboarding but requires the same care and structure.

Why efficient employee onboarding is important

When done well, employee onboarding helps new staff feel welcomed, supported, and confident from day one.

This positive start increases their engagement with the company, making them more motivated and committed to their work.

Let’s look at the deeper implications:

Early retention

Engaged employees are more likely to stay longer, significantly reducing early turnover rates.

On the other hand, new hires are much more likely to look for a new job if they don’t enjoy the onboarding experience.

Mastering early retention can help you avoid the costly recruitment and training efforts associated with frequent turnover, as replacing an employee can cost between 50% and 200% of their salary.

Faster productivity & role clarity

Good onboarding also helps newcomers understand their role clearly, how processes function within the organization, and how their contributions fit into the broader business goals.

This clear guidance fast-tracks their ability to become productive members of the team, enabling them to start contributing effectively much sooner.

It provides a crucial “high-learning, low-stakes period” for skill acquisition and familiarization with your tools and processes.

Building trust & community

Beyond covering the essential job tasks, efficient onboarding is pivotal for fostering a sense of community and trust.

It sets the tone for your company culture from the very beginning, helping new hires feel they are truly part of the team.

This process creates the foundation for meaningful professional and personal relationships within the workplace, preventing new employees from feeling isolated.

Strengthening company culture

Onboarding serves as the primary introduction to your company’s unique culture and values.

When new hires connect with and understand the organizational ethos—whether it’s collaborative learning, output-orientation, or open communication—it strengthens their alignment with the company’s mission.

Disengaged employees cost the global economy $8.8 trillion a year, according to Gallup.

Engagement impacts all 11 of the performance measures Gallup looked at. But multiple studies show one of the main business processes that impacts engagement is onboarding.

Companies with mature onboarding processes, for example, are up to 103% more likely to improve employee retention and engagement, according to Brandon Hall Group’s 2024 Effective Onboarding study.

Employee onboarding best practices

To maximize the positive impact of your onboarding program, consider these guiding principles:

Develop a clear vision and mission

Define the overarching goals and purpose of your onboarding process.

What do you want new hires to achieve and feel during their initial period?

A clear vision guides all subsequent actions and ensures consistency.

Prioritize automation and digitalization

Take advantage of HR software and digital tools to automate repetitive administrative tasks like paperwork, system access, and reminders.

This gives your HR team and managers more time to turn their attention to the onboarding process itself.

In other words, they can check that it fulfils new employees’ needs while incorporating them smoothly and consistently into the team.

Embrace personalization

Recognize that one size doesn’t fit all.

Tailor aspects of the onboarding experience—from learning materials to introductions—to the individual’s role and specific needs.

This makes the experience more relevant and engaging.

Clear and consistent communication

Establish a regular cadence of honest and transparent communication throughout the entire onboarding journey.

This includes setting clear expectations and creating an open environment where new hires feel comfortable asking questions.

This facilitates continuous feedback that allows you to identify pain points, adapt the process in real-time, and demonstrate that your organization values their input

Ensure role clarity and alignment

Ensure new hires clearly understand their specific responsibilities, performance expectations, and how their role contributes directly to the team and company’s strategic goals.

Promote continuous learning and development

Onboarding doesn’t stop after the first few weeks.

Emphasize a culture of continuous learning, providing access to ongoing training, skill development opportunities, and discussions about long-term career progression.

Measure and optimize

Regularly track key onboarding metrics (e.g., early retention rates, time to productivity, new hire satisfaction scores).

Use this data to assess the effectiveness of your program, identify areas for improvement, and make data-driven adjustments to optimize the experience.

Consider cross boarding

Extend the principles of effective onboarding to existing employees transitioning into new roles within the company.

These “cross border” employees also benefit from role clarity and cultural assimilation into their new teams.

Practical considerations of onboarding new employees in the US

There are various HR and payroll tasks that are specific to US companies when onboarding staff.

Here are some important things to consider and do:

• In the US, you need to verify the employee’s legal right to work and collect essential information such as full name, address, date of birth, gender, Social Security Number (SSN), and tax withholding details. This is typically done through Form I-9 (to verify work eligibility) and Form W-4 (to determine federal income tax withholding), both of which the employee completes as part of the onboarding process.
• Set employees up on your payroll platform and follow your business’ steps for new hires.
• If you’re hiring your first employee in the US, make sure you’re properly registered as an employer by obtaining an Employer Identification Number (EIN) from the IRS. You may also be required to carry workers’ compensation insurance and general liability coverage—requirements vary by state, so be sure to check both federal and state laws.
• Ensure compliance with all relevant areas of employment law, including contracts, working hours, minimum wage, paid time off (PTO) entitlements, and dismissal procedures.
• Follow the Americans with Disabilities Act (ADA) and related EEOC guidelines to prevent discrimination and ensure a fair, inclusive workplace. After making a job offer, you may ask whether the employee needs any reasonable accommodations to perform essential job functions. However, questions should be limited to understanding how to support their ability to work—not about the nature of a disability. This approach helps create an inclusive environment, while respecting the candidate’s privacy and legal rights. Employers are required to provide reasonable accommodations once they become aware of a need.
• Strictly follow applicable US data privacy laws when handling employee personal and sensitive data. This includes informing employees about what data you collect, why you collect it, how it’s used, how it’s stored securely, and how long it will be retained. Employees also have the right to access their data, in accordance with relevant federal and state privacy regulations.
• Check whether your company offers a retirement savings plan, such as a 401(k), and whether you automatically enroll new employees based on age, tenure, or other eligibility criteria.
• Check you’re providing a safe and healthy working environment, including for anyone with disabilities. So, after offering them a job, check whether the employee has any disabilities or health conditions that may require you to adjust your workplace. This is important as many disabled people will not inform you about their disability in the application process and you can’t compel them to.

What to consider when onboarding remote and hybrid employees

Remote and hybrid recruits can find it more challenging to feel part of the business than those who are based in the workplace every day.

They miss out on personal interactions and may have more difficulty getting support and information.

For these employees, a highly structured and intentional approach is key:

• Set clear expectations around communication channels (e.g., dedicated chat platforms, video conferencing), availability, and collaboration tools. Be mindful of potential “Zoom fatigue” and encourage asynchronous communication where appropriate.
• Actively look for ways to build engagement and relationships digitally or, where possible, through planned in-person events. This includes regular check-ins with buddies and managers, invitations to virtual team socials, informal online get-togethers, and virtual introductory meetings with key team members. Consider encouraging personalized video introductions from the new hire and team members.
• Ensure equal access to all company resources, training materials, and benefits, including mental health and well-being support, from day one. This means providing virtual access to all necessary documents, knowledge bases, and learning platforms.
• Confirm that all necessary equipment (laptops, monitors, internet connectivity support if applicable) is set up and working correctly before their start date, with readily available IT support for troubleshooting.
• Provide defined learning tracks and ensure role-specific training can be accessed remotely. Encourage self-paced learning and on-the-job training opportunities even in a remote setting.
• Actively encourage healthy boundaries between work and personal life. Remote employees don’t observe their colleagues leaving the office and might find it harder to switch off.
• Ensure you have inclusive policies that don’t inadvertently favor employees who are solely based in the physical workplace, ensuring fairness in opportunities, development, and recognition for all.

How employee onboarding software can enhance the process

There’s a lot to do when new staff join, but HR software can make the process much quicker and easier, offering a consistent and scalable experience. For example, it can:

• Automate repetitive administrative tasks like sending out welcome messages, assigning forms, and collecting digital signatures, drastically reducing manual workload and ensuring compliance with legal and regulatory requirements by securely storing all completed documents.
• Predefine workflows and onboarding tasks, allowing segment workflow by department or sub-team, for example. This ensures that new hires and line managers are immediately aware of their responsibilities and expected actions.
• Create a more engaging and user-friendly experience through cloud-based information hubs, accessible employee self-service portals, and automated welcome messages. This can provide a sense of belonging and make new hires feel valued from day one.
• Track new hires with seamless progress reports, providing HR and managers with real-time analytics. This allows them to track completion rates, identify bottlenecks, and ensure no steps are missed.
• Enable self-service access to information new hires may require, such as policies and training materials. Giving them access to information whenever they need it fosters independence and allows them to learn at their own pace.
• Support remote and hybrid setups by providing new employees with virtual access to everything they need, regardless of their location.
• Ensure a standardized onboarding process for all new hires, maintaining quality across the organization. As companies grow, this software can easily scale to accommodate a larger number of new hires without significant additional resources.

Anthony says: “Small businesses often don’t have a dedicated HR professional.”

“Onboarding software can help save time, centralizing administration and providing HR-based support in areas where the owner or manager may have limited expertise.”

Final thoughts: Make onboarding a holistic experience

Onboarding is not solely an HR or compliance task.

Your aim is to make it a holistic experience that shapes the future of your employees and your business.

By investing in the right mix of technology, human touch, and culture-building, you can create an onboarding process that supports and inspires new recruits while helping you make crucial gains in retention, engagement, and productivity.