A strong pre-boarding process is the foundation of effective onboarding, yet many organizations miss this crucial first step. When pre-boarding is overlooked, it’s not just about potential renege rates—it’s a missed opportunity that can affect team morale, financial outcomes, and long-term retention.
The Growing Trend of New Hire No-Shows
Renege rates hover between 10% and 24%. An Indeed survey found that 19% of candidates have accepted a verbal offer but never signed the paperwork, while 22% accepted the offer but failed to show up on their first day.
The financial costs associated with renege rates can be eye-opening. The Society for Human Resource Management (SHRM) states that the average cost-per-hire is nearly $4,700, and when candidates back out, these expenses multiply due to the need to restart the hiring process. Coupled with productivity delays, the impact on the bottom line can be significant.
Understanding why candidates change their minds after accepting an offer is the first step in solving the problem.
Why Ghosting Happens
Imagine a first date where the other person is distant and vague about their intentions. Chances are, you wouldn’t stick around for a second date. Similarly, candidates “ghost” employers during pre-boarding when communication is lacking or impersonal. Poor communication, vague timelines, and limited engagement can lead candidates to second-guess their decision.
According to the Indeed survey, poor communication is one of the main reasons candidates ghost employers. 26% of job seekers report discomfort with notifying employers of their decision to back out. These gaps can make new hires feel disconnected and uncertain, driving them to disengage.
Weighing the Financial Impact
Recruitment is expensive. On average, it costs over $1,500 to hire a single employee, not to mention the productivity losses when candidates renege. If 17 out of 100 new hires back out, that’s more than $25,500 in wasted recruitment costs alone. Replacing an employee can cost anywhere from 90% to 200% of their salary, factoring in lost productivity, additional recruitment, and training expenses.
The SHRM found that employers typically spend the equivalent of six to nine months of an employee’s salary to find and train their replacement. This means replacing an employee with a $60,000 salary can cost a company between $30,000 and $45,000. The actual financial burden of turnover highlights how a flawed pre-boarding process can impact an organization’s budget.
The Cultural Impact
Beyond dollars and cents, poor pre-boarding disrupts team dynamics and workplace culture. When new hires don’t feel prepared or connected, it creates a ripple effect. Existing team members often must pick up extra work to compensate, leading to frustration and burnout.
Research shows that 61% of new hires do not receive any training on company culture, making integration into the team even more challenging. This strain can disrupt team cohesion and lower morale. When employees notice that their company repeatedly fails to onboard new hires properly, they may start questioning their own job stability.
The cultural impact goes beyond workload distribution. When team morale suffers, productivity suffers. According to Gallup, low engagement among current employees can translate into a 21% decrease in profitability. The initial impression set during pre-boarding can either strengthen or erode team trust and confidence.
Long-Term Retention Implications
First impressions count, and pre-boarding is a new hire's first real impression of the company. Research shows that employees with a negative onboarding experience are twice as likely to seek other opportunities within their first year.
Conversely, a positive experience can make employees 50% less likely to quit. Initial engagement sets the tone for long-term commitment. If the pre-boarding process feels disjointed or impersonal, the seeds for early turnover are already planted.
Statistics reinforce this point: 83% of high-performing organizations start onboarding well before the new hire’s first day. Companies that prioritize early engagement see a 60% improvement in revenue year-over-year and experience higher productivity rates. In contrast, organizations that fail to establish a solid pre-boarding process are more likely to experience higher turnover and decreased employee satisfaction.
Building an Effective Pre-boarding Strategy
Creating a solid pre-boarding program doesn’t have to be complex, but it does need to be intentional. Effective new hire management is crucial in setting up a winning strategy. Here’s how to start:
- Clear communication from offer acceptance onward: Keep the lines of communication open. Start with a welcome email outlining what the new hire can expect, followed by periodic check-ins leading up to their first day. Providing updates helps keep them engaged and reassures them they made the right choice. An Addison Group survey found that 70% of job seekers lose interest in a role if they don’t hear back from their potential employer within one week.
- Resource provision: Equip new hires with resources that make them feel prepared. This could include access to a company handbook, mentorship opportunities, FAQs, or an overview of their upcoming role. These materials create a sense of belonging and readiness.
- Personalized engagement: Go beyond generic emails. Send personalized messages and organize introductory calls or team meet-and-greets. Personalized interactions show that the company values them as an individual, not just a hire. Employees are 3.5 times more likely to rate their onboarding experience as “exceptional” when it includes a clear professional development plan and social interactions.
Abode’s platform simplifies managing early-career programs and onboarding with tools specifically designed to keep candidates engaged. By consolidating tasks and automating processes, Abode helps save time, reduce turnover, and create a seamless experience for new talent.
Key features like cohort-specific content, community forums, and SMS reminders ensure candidates stay informed and engaged from the start. Companies that have used Abode have achieved positive results in their candidate engagement efforts. For instance, Elevance Health achieved a 92% candidate adoption rate and 81% engagement after switching to Abode.
Robin Winer, an Early Career Associate at HUB International, explains the platform's benefits: “Abode made it so everything was under one umbrella, and every candidate had the same messaging.” This consistent communication helps new hires feel confident and prepared, setting them up for success right from the start.
Conclusion
The cost of poor pre-boarding extends far beyond renege rates. Neglecting this critical phase can result in financial losses, cultural disruptions, and early turnover. By investing in clear communication, resources, and personalized engagement, organizations can create a pre-boarding process that prepares new hires for long-term success.
