BEYOND RECRUITMENT: HOW SMES CAN USE EMPLOYEE ONBOARDING TO BOOST RETENTION

You’ve gone through the entire recruitment process. You’re excited because you’ve landed top talent and can’t wait to see the value they’ll bring.

But weeks later, something feels off. The employee isn’t fully settled. There’s a disconnect with the team.

Fast forward six months, and they resign.And you’re left wondering: What went wrong? Where did the excitement go?

Here’s the raw truth: there’s a high chance your onboarding sucks – if it even exists at all.

The thing is, onboarding isn’t just a “welcome session” or a quick orientation. It’s the bridge between recruitment and retention. Done well, it helps employees feel connected, clear about their roles, and confident about where they fit in. Done poorly or skipped altogether, it becomes one of the fastest ways to lose good talent.

For SMEs, onboarding can be the secret weapon to not only retain employees but also boost productivity, build loyalty, and save the business from costly turnover. In this article, we’ll explore why onboarding matters, what SMEs often overlook, and practical ways to create an onboarding experience that keeps your best hires around.

Employee Orientation Versus Employee Onboarding

A lot of times, employers confuse onboarding and orientation. Most actually think it's the same thing, but they are quite different.

Employee Orientation

Orientation is the initial welcome for new hires. It is naturally administrative and typically lasts from a few hours to a couple of days. The process targets all the must-dos for the employee, such as completing paperwork, familiarisation with basic policies and benefits enrolment. Orientation is also keen on compliance – ensuring that the employee is up to speed with company-wide rules, regulations and safety protocols.

Employee orientation allows the employer to make a first good impression where the employee is introduced to the mission, values and culture of the company in a broad sense. It might include a tour of the company, including the premises, and an introduction to some colleagues – especially the ones they will work with in close collaboration.  Orientation is also logistical in nature because it's when the employee is assigned the necessary equipment, such as a workstation, and access to relevant systems, such as logins and key cards.

Employee Onboarding

Unlike orientation, onboarding is a strategic and ongoing process and can last anywhere from 90 days to one year. Employee orientation is often the first step of the onboarding process. Onboarding targets several objectives, namely:

• Integration – it's aimed at immersing the new employee in the cultural and social dynamics of the company and their team.

• Training and development – onboarding focuses on role-specific training, development of skills, and ongoing coaching to ensure the new hire excels in their role.

• Relationship building – onboarding focuses on building relationships, and this is achieved through interaction with colleagues, regular check-ins with managers, and sometimes, the presence of a buddy or mentor to offer guidance.

While onboarding is largely long-term and in-depth, orientation is a short-term event. Onboarding goes deeper to help build the new hire’s sense of belonging and engagement – and this increases job satisfaction and minimises turnover.

Why Employee Onboarding Matters for SMEs

An article by Harvard Business Review revealed that a formal onboarding program could lead to a 50% increase in new hire retention.

A study by Click Boarding discovered that employees are 58% more likely to remain with an organisation for three years if they experience a structured onboarding. The same survey revealed that new employees are 50% more productive when exposed to a standardised onboarding. On matters of employee satisfaction, a report by Gallup showed that employees with great onboarding experiences are 2.6 times more likely to be extremely satisfied at work. A good onboarding experience not only boosts retention and satisfaction, but it also reduces time-to-productivity, according to the SHRM Foundation Guide. 

Every employer derives satisfaction in seeing an employee settle in well in their new role, show high levels of engagement, fit superbly into the company culture, and, most importantly, become productive as soon as possible. However, a new hire can hardly satisfy these expectations in the absence of a structured onboarding process.

Therefore, organisations must be intentional when it comes to handling new hires if they want to get the most out of them – and it begins with how they approach the onboarding process and their level of engagement. Do they view onboarding as a cost centre, or do they believe that a properly performed onboarding process is the secret weapon to employee retention – and eventually, unmatched productivity?

The absence of a structured onboarding process is a recipe for high turnover. For SMEs, a high turnover rate means increased spending in the hiring process (because you must repeat the process all over again), business disruption (which results in losses, untapped opportunities, and a reduced customer base), and resource drain. Employee turnover is a costly occurrence. Besides the cost of replacement, there are hidden costs including morale damage, workplace safety issues and productivity loss.

Common Employee Onboarding Mistakes SMEs Make

SMEs must understand that for new hires, their first taste of the company culture is the onboarding process. As such, we cannot overemphasise the importance of getting it right immediately. The absence of a great onboarding process, or mistakes during this crucial period, can be disastrous – it will determine how long the employee stays with the organisation, their productivity and morale levels.

• Beginning the onboarding process on the new hire’s first day.

The onboarding process should start as soon as the employee accepts the job offer. A new employee’s first day is a valuable time where they could be learning layouts, routines and skills. SMEs should handle paperwork before an employee steps through the door or logs in for their first remote shift. The new hire can perform the extensive reading required of them way before their first day. Another reason this is a mistake is, when preboarding isn’t done, the new hire begins their first day feeling anxious and unprepared, they lack resources, tools or even clarity about what to expect, and it creates a poor first impression that can stick with them for a long time.

Successful SMEs avoid this mistake by sending a welcome email/package before the new hire’s first day at work. Further, they share company values, information about culture and the agenda of the first week ahead of the new employee’s first day. Also, they provide necessary policies, forms, and some even share materials to provide light training in advance. As a result, the new hire already feels confident and connected way before they officially begin work – in the office, or remotely.

• Treating onboarding as a one-day affair

Many SMEs assume that a quick orientation session that entails sharing company policies, signing a couple of forms, and team introduction is sufficient. This is far from it. True onboarding is not an event, but rather a process. When handled as a one-day affair, it leaves the new hire feeling overwhelmed with information and ill-prepared for success in their new role. An effective onboarding should stretch over several weeks, and depending on the complexity of the role, even over six months, to ensure smooth integration.

• Unclear Expectations

When new employees aren’t given clarity on their roles, performance goals, and what success looks like, confusion sets in quickly. They may spend months guessing what’s expected, which leads to frustration for both the employee and manager. SMEs need to communicate specific responsibilities, priorities, and measurable objectives early on to eliminate this uncertainty.

• Ignoring Culture Integration

Onboarding isn’t just about tasks. It’s also about people and culture. Many SMEs focus heavily on job duties but forget to introduce new hires to the values, behaviours, and unwritten rules that shape the workplace. Without this cultural integration, employees may feel like outsiders, which weakens their connection to the business and increases the risk of early exits.

• Not Assigning Support/Mentorship

A new employee without a go-to person often feels lost. SMEs sometimes overlook the importance of assigning a buddy, mentor, or support person who can guide the new hire through day-to-day questions. Without this, new employees struggle silently, which slows down their adjustment and confidence. Assigning a mentor provides a safety net and speeds up adaptation.

• No Follow-Up After The First Week

Some SMEs think once the first week is over, the job is done. But that’s when the real test begins. New hires often face challenges after the initial honeymoon phase. Without regular check-ins (30, 60, 90 days), issues go unnoticed until they become major problems. Consistent follow-up helps managers catch concerns early, provide support, and show that the employee’s growth truly matters.

Practical Employee Onboarding Strategies for SMEs

Who said getting onboarding right must be an expensive or complicated affair? Of the utmost importance is to be consistent and intentional. Wondering what practical and effective strategies to put in place to ensure effective onboarding? Here are some strategies that can help you set your new hires up for success.

1. Pre-boarding (Begin before Day one)

Onboarding shouldn’t begin when the new hire walks through the door.  It should begin the moment they accept the offer. Preboarding could be a simple welcome email, sharing resources such as the employee handbook, introducing them to their reporting manager virtually and so on. While this might appear like simple gestures, they make a big difference. Preboarding minimises first-day anxiety, besides helping the new employee arrive more confident, informed and ready to contribute towards the realisation of organisational objectives.

2. Make Day One Count

Day one leaves a mark that’s hard to erase. Whatever you do, ensure that the new hire’s first day isn’t disorganised or indifferent – unless you want to kill the excitement that a new hire feels on their first day. Focus on creating a warm and structured first-day experience. For instance, prepare their workstation or access credentials (if it's a remote role), introduce them to the team and give them a clear agenda for the day. This says that the organisation values them and has prepared adequately for their arrival.

3. Ensure clarity from the start

Ambiguity can quickly frustrate a new hire. Clearly define roles, responsibilities, and key performance indicators from the word go. Let the employees know what is expected of them during the first week, first month and beyond. An employee is more likely to be productive and self-motivated when they understand how their work connects to the bigger picture.

4. Assign a support system

Irrespective of how talented a new employee is, beginning a new role comes with uncertainties and many questions. Consider assigning a mentor or buddy they can turn to for guidance regarding work processes or how best to navigate the company culture. A good support system reduces stress, accelerates learning, and helps the new hire feel included.

5. Regular check-ins

Onboarding doesn’t end after the first week. Managers should consider scheduling structured check-ins at 30,60, and 90 days to review progress, address challenges, if any, and provide feedback. These conversations help keep the employee on track and are also a way of showing that their growth and adjustment matter to the organisation.

6. Connect them to the company culture

Part of the onboarding process is to ensure that employees understand and feel part of the organisation’s culture. One effective way of achieving this is by sharing the company’s story, ways of working and values. Encourage team interactions, involve the new hire in company traditions and model the behaviours you want to see. It's easier for an employee to develop a stronger sense of belonging and loyalty when they have connected with the culture early.

Conclusion: Employee Onboarding as a Strategic Advantage

Onboarding is not just a formality. It is where retention and performance begin. For SMEs, a structured process helps new hires feel welcome, understand expectations, and connect with company culture. When done right, it turns excitement into long-term commitment.

The lesson is simple: do not just hire talent, but onboard them well.