Onboarding tools

Why are onboarding tools important?

Onboarding tools are essential for retaining talent and building lasting customer relationships. Without effective onboarding, businesses risk losing employees and customers early in their journey.

Research proves the importance of retention strategies such as onboarding, revealing that half of all senior outside hires fail within 18 months, and half of hourly workers leave within 120 days.

For employees, these tools help smooth the transition into their roles. The right onboarding can promote a sense of belonging. According to Deloitte, this leads to organizational success such as a 56% increase in job performance and a 50% reduction in turnover risk.

For customers, onboarding tools ensure they can fully understand and benefit from a product, increasing customer loyalty and advocacy. 

Organizations benefit from streamlined processes, lower training costs, and fewer support requests, making onboarding tools a valuable investment for long-term growth.

What are the goals of onboarding tools?

Onboarding tools are designed to streamline and enhance the integration process for new employees or customers. 

Their main goals are to ensure smooth transitions, boost engagement, and set up newcomers for success in their roles or with the product.

Let’s look at these objectives in more detail.

Facilitating seamless transitions

• Helps new employees or customers feel comfortable and settled quickly.
• Introduces company culture or product features in a structured way.
• Offers clear guidance through the initial stages to reduce confusion or overwhelm.

Providing clarity and expectations

• Defines roles, responsibilities, and goals for new employees.
• Ensures customers understand the product’s key features and how to use them effectively.
• Sets expectations for performance and provides milestones to track progress.

Enhancing long-term engagement and retention

• Fosters a sense of belonging and connection with company culture for employees.
• Increases customer loyalty by guiding users to maximize the product’s value.
• Support continuous development through regular check-ins or feedback loops.

Who is involved in onboarding tools?

Onboarding tools involve various stakeholders, both inside and outside the company, who help create and manage the process. These people ensure the onboarding experience is smooth and effective for new employees or customers.

Let’s explore these groups further:

Internal stakeholders

• HR/people operations: Manage the overall onboarding process, ensuring it fits with company policies and culture.
• Hiring managers: Set expectations, introduce team dynamics, and help new employees understand their roles.
• IT/systems administrators: Ensure the technical systems support the onboarding tools and integrate with other company software.
• Training & development teams: Create training and coaching materials and resources to help new hires or customers get up to speed.
• Leadership: Support the onboarding process and make sure it aligns with company goals.

External stakeholders

• Onboarding tool providers: Build and maintain the software, ensuring it meets the company’s needs.
• Consultants/implementation partners: Help set up and customize the onboarding tools to match the company’s requirements.
• Vendors: Provide specialized tools or resources that may be used in the onboarding process.

Customers/end-users: Give feedback on the onboarding process to ensure it helps them fully understand and use the product or service.

What is required for onboarding tools success?

To make onboarding tools successful, organizations need to focus on three important areas: a simple, user-friendly interface, smooth integration with existing systems, and using analytics to track and improve the onboarding process.

To set you up for success, we’ll outline what’s needed for successful onboarding tool projects below.

Focus on a user-friendly interface

Design an interface that is easy for new users to navigate, with well-structured onboarding flows that guide them through each step. When onboarding tools are simple and clear, it helps new employees or customers get started quickly. A user-friendly design reduces confusion and frustration, making the onboarding process smoother and more enjoyable. With a well-organized interface, users can focus on learning and adapting to their new role or product, rather than spending time figuring out how to use the tool itself.

Ensure seamless integration

Onboarding tools, often part of a comprehensive digital adoption platform, must work well with other systems in the company. Examples include HR software, customer relationship management (CRM) tools, and learning platforms. This integration keeps all the data in one place, making it easier for HR teams and managers to track progress and manage tasks. It saves time by reducing the need for manual data entry and ensures that everything is connected, so new users have a smooth experience throughout the process.

Utilize analytics for continuous improvement

Track how users interact with the onboarding tool using product analytics. Monitoring engagement and progress helps identify areas where the process might need improvement. Analytics show what is working well and where users are facing difficulties, giving businesses valuable insights. By regularly reviewing these analytics, organizations can make adjustments to improve the onboarding experience, ensuring higher success rates and better outcomes for both employees and customers.

Why do onboarding tools projects fail?

Onboarding tool projects often fail due to challenges in user experience, lack of coordination between departments, and improper planning. Addressing these issues is key to ensuring a successful onboarding process. 

Let’s explore these areas more:

Poor user experience and design

A major reason onboarding tools fail is poor user experience and design. If the tool is hard to use or confusing, new employees or customers can become frustrated. Complicated steps, unclear instructions, or a cluttered layout can make it difficult for users to complete tasks. When onboarding tools are not intuitive, users may drop off early, leading to lower engagement and overall dissatisfaction. A smooth, easy-to-use design is essential to keep users on track and engaged with the process.

Lack of alignment between HR and IT

Onboarding tools also fail when there is poor communication between HR and IT teams. These departments need to work together to ensure the tool is functional and meets the company’s needs. If HR doesn’t clearly share their expectations with IT or if IT doesn’t understand the requirements, the tool might not work well, or it could have integration issues. This lack of collaboration can cause delays and reduce the effectiveness of the onboarding process, making it harder for new hires to get settled.

Poor planning and resource scoping

Many onboarding projects fail due to poor planning and improper resource allocation. Without clear goals, timelines, or resources, the project may not progress as expected. Organizations sometimes jump into implementation without fully understanding the resources required, which can lead to missed deadlines or incomplete features. Proper planning ensures that the tool is set up to meet current and future needs. If the scope and resources aren’t clearly defined, the onboarding tool may fall short of expectations and fail to provide lasting value.

Onboarding tools use cases

Onboarding tools help businesses streamline the integration of new employees or customers by providing a structured and automated process. This makes the onboarding experience more efficient and effective. 

Below are three examples of how onboarding tools can be used in different business settings.

Retail

Scenario: A large retail chain hires seasonal workers for the busy holiday season.

Method: The company uses an onboarding tool to automate paperwork, provide training videos, and introduce new hires to store policies, layouts, and customer success practices.

Outcome: New hires get up to speed quickly, reducing training time and increasing job satisfaction. This helps the store run smoothly with less turnover during the busy season.

Technology

Scenario: A software company hires remote developers from around the world.

Method: The company uses an onboarding platform that offers virtual orientation, introduces company culture through digital tools, and helps new hires access work resources like code repositories and communication channels.

Outcome: Remote workers feel connected and engaged, leading to quicker productivity and better collaboration with the team.

Healthcare

Scenario: A healthcare provider hires new nurses and medical staff who must follow strict regulations.

Method: The organization uses an onboarding tool to guide new hires through required training, certifications, and hospital systems. It tracks progress and offers support where needed.

Outcome: New staff are trained and ready to work quickly, ensuring compliance and improving patient care, while reducing the workload for HR.