When a new employee joins, the hope is they’ll bring energy, skills, and value to the business. But what often gets overlooked is just how much that journey — starting from their very first touchpoint to their final day — impacts your bottom line.
Measuring the return on investment (ROI) of onboarding and offboarding isn’t just an HR exercise — it’s a business necessity. Whether you're hiring rapidly or dealing with turnover, understanding what works (and what doesn’t) in these key transitions can lead to major cost savings, higher productivity, and a more resilient culture.
In this post, we’ll explore how to calculate ROI, which metrics matter most, and how organizations can build people-first processes that drive long-term results.
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Onboarding and offboarding may sit on opposite ends of the employee lifecycle, but they both involve serious investment — whether it's time, money, or effort. Here's what that investment can look like:
According to Brandon Hall Group, more than 61% of companies say they will invest heavily in improving onboarding this year. (Source)
86% of job seekers are likely to research company reviews and ratings when deciding to apply for a job. (Source)
The good news? With the right systems in place, you can reduce waste, improve outcomes, and deliver an experience that makes a lasting (positive) impression.
To evaluate onboarding and offboarding ROI, look at these key categories:
How long does it take for a new hire to contribute effectively?
Example metric: Average days from start date to first independent project or goal completion.
If you’re seeing high turnover within the first 6–12 months, onboarding could be the culprit.
Gallup reports that employee turnover can be as much as 50% in the first 18 months of employment.(Source)
Deloitte found that 69% of employees are more likely to stay with a company for three years if they had a positive onboarding experience.(Source)
Happy, connected employees stay longer and do better work.
Have new employees completed all required training and policy documentation?
Metrics to track: % completion rate of required documents/tasks within the first 30 days.
How smooth is your exit process?
One of our customers recently realized they were routinely overpaying employees who had already left — sometimes for weeks — because their old system didn’t alert Payroll in time. Not only did this lead to financial loss, but it also created unnecessary admin and awkward conversations. After implementing a more connected offboarding process, they saw an immediate reduction in overpayments and a much smoother transition for leavers.
It’s a small example, but a powerful one — offboarding isn’t just about checklists; it’s about closing the chapter cleanly and respectfully.
If this sounds familiar, and you're curious how others have tackled it, we’ve shared more examples on our website.
Ivan Harding explores the disconnect between how HR leaders perceive their organization's employee experience and how employees actually feel about it. Read Now
If you're looking to improve ROI from onboarding, here are some tried-and-tested best practices:
Start Before Day One
If you’re exploring how to automate onboarding process components without compromising experience, look for platforms like Applaud Journeys that balance flexibility with ease-of-use.
Employees may leave, but how they leave matters just as much as how they joined. A well-run offboarding process isn’t just about compliance — it protects your reputation and can even become a boomerang talent pipeline.
Centralize the Offboarding Checklist
Use Exit Interviews Strategically
Involve All Stakeholders
Consider Reboarding & Alumni Programs
Harvard Business Review reports that 28% of new hires are boomerang employees.(Source)
Measuring the ROI of onboarding and offboarding isn’t just about hard numbers — it’s about understanding what kind of experience you’re delivering and how it affects your people and performance.
When you look at these transition points as opportunities — not just tasks — you unlock potential that ripples through the entire organization. Better retention. Lower costs. Stronger culture.
Whether you're just getting started or refining a mature process, keep asking:
If you’re curious to see how other organizations are solving this at scale, especially through personalized, automated journeys — we’ve shared some helpful resources and stories on our website.
Anji is a Senior Product Owner with eight years of experience in delivering HR technology solutions, from on-premise to cloud-based systems. With a solid background in software implementation and system integrations, he helps shape practical products that align with business needs to support organizations and their people.