Replacing an employee costs an annual salary

Staff retention is one of the main reasons for investing in a good onboarding programme.

From an onboarding report by PWC in Great Britain it becomes apparent that one in three new employees leaves the company within a year; 22% of them go to another employer in the first six weeks. For many organisations, therefore, a formal onboarding process is crucial for their business operations.

35% leave the company within two years.
In the Netherlands, the figures are slightly different, but they are remarkable all the same. In the first half year, 86% of new staff decide whether they will stay or leave. An average of 35% of new employees leave the company within two years. Did you know that replacing an employee costs about a gross annual salary? Add up the costs of recruitment and selection, onboarding by colleagues, training and lower productivity in the first year.

Opt for a good onboarding process.
If you cannot manage to retain new employees, it will cost a lot of effort and money. A good onboarding process, on the other hand, has its benefits. Onboarding works both ways.

What are the costs of poor onboarding?

  • The average costs of replacing one employee are the equivalent of a gross annual salary (international figures even suggest one to three times the annual salary).
  • If there is no onboarding process, it often takes a year before an employee has the same productivity as the average worker in the respective company.
  • Companies that do not have proper onboarding for their employees may have a worse labour market reputation.

What are the benefits of successful onboarding?

  • Onboarding processes can reduce staff turnover by at least 25%;
  • Employees become productive sooner; often it takes only four to six months for them to be at their colleagues’ average production level;
  • A better labour market image and higher employee loyalty.

Sources: PWC, Wynhurst Group, Aberdeen Group,

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