What is Automated Onboarding and How Does it Work?

In this article, we will explore what automated onboarding is and why your business needs it.

What is automated onboarding?

Automated onboarding is the use of software and smart workflows to move a new hire from “offer accepted” to “fully set up” with less manual admin and fewer mistakes.

Automated onboarding (also called onboarding automation) replaces spreadsheets and email chains with standardised digital steps. Typical tasks include collecting personal data, generating contracts, checking right to work or I-9, creating accounts, sharing policies, and assigning first shifts or training.

💡 With Shiftbase HR+, you can collect new hire details via a secure form, generate contracts from templates and track every onboarding step in one place, directly from the HR tab in Shiftbase.

HR+ new hire workflow

Impact on retention and productivity (with stats)

Automated onboarding is one of the fastest ways to improve retention, speed up productivity, and protect compliance across remote and hybrid teams.

Research consistently links structured onboarding to people staying longer and performing better. Brandon Hall Group found that organisations with a strong onboarding process improve new hire retention by 82% and productivity by over 70%.

Recent onboarding statistics report that employees who experience structured onboarding are 69% more likely to stay with the company for three years, while poor onboarding causes around 23% of new hires to quit within the first six months.

Adoption trends and market growth

Most organisations now see onboarding as a strategic process, not just a first-day checklist. A 2025 overview of onboarding statistics shows that 88% of organisations report having a formal onboarding process and 76% of HR leaders say onboarding is critical for retention.
The onboarding software market continues to grow as more employers look for dedicated tools instead of manual processes. Market reports forecast onboarding and broader HR software to expand steadily through the 2020s, driven by digital onboarding and AI features that support remote and international hiring.

👉 Key takeaway for managers: If you still rely on manual, paper-based onboarding, you are competing with employers who can send digital offers, collect data, and set up access in one smooth, automated flow.

Key components of an automated onboarding system

A good automated onboarding system is made of connected building blocks that guide every new hire through the same clear journey.

Workflows, tasks and approvals

Workflows are the backbone of onboarding automation. They define who does what, when, and in which order – from pre-boarding to the end of probation. Instead of chasing by email, tasks are created automatically for HR, managers, IT and the new hire, with due dates and reminders.

A simple way to think about your workflow is:

Pre-boarding – collect data, do right to work / I-9 checks, prepare contracts.
Day one – system access, introductions, safety and policy basics.
First 30–90 days – training, goals, feedback and review meetings.

Strong workflows reduce errors and delays. They also create a clear audit trail, which is helpful for compliance and for measuring onboarding success.

💡In Shiftbase, HR+ lets you send new hire forms, generate contracts and track which steps are done, while scheduling and time tracking ensure people are correctly set up in rotas and hours from day one.

Integrations with HR/payroll, IAM and LMS

Automation works best when your systems talk to each other. That usually means connecting onboarding to:

HR and payroll systems – so new hire data flows straight into the employee record and payroll.
Identity and access management (IAM) – so accounts and permissions are created and removed automatically.
Learning platforms or LMS – so mandatory training is assigned on day one.

Without these links, managers often find new hires waiting days for system access or paid incorrectly in their first month. Industry statistics highlight infrastructure and access issues as a major pain point in onboarding, especially for remote workers.

💡Shiftbase acts as your workforce hub, centralising HR data, scheduling and time tracking, and integrating with other systems so that once someone is onboarded, their hours and absence can flow through to payroll much more smoothly.

Self-service portals, chatbots and AI assistants

Self-service is now expected in digital onboarding. New hires want to complete forms, upload documents, read policies and check their rota on their own device. When information is easy to find, people feel more in control and get up to speed faster.

AI assistants and chatbots can support this by answering simple questions (“Where do I upload my ID?”, “When is my first shift?”) and sending reminders. CIPD guidance on AI in the workplace encourages HR to use AI tools across the employee lifecycle, including onboarding, but stresses the need for clear policies, transparency and human oversight.

How to automate onboarding in your business (step-by-step)

Here is a simple way to move from manual onboarding to automated onboarding, without losing the human touch.

Start by mapping what actually happens today across pre-boarding, day one and the first 90 days. CIPD recommends planning induction in phases before start date, on the first day and in the following weeks. As you map each step, note who is involved (HR, manager, IT, payroll) and where delays happen.

Then pick a few basic onboarding KPIs so you can measure the impact of onboarding automation:
- Time to complete paperwork and compliance checks
- Time to productivity (when the new hire reaches expected performance)
- First-year turnover for new hires
Keep this simple; a one-page flow and three or four metrics are enough to start.
Next, decide which parts of the journey should be handled by employee onboarding software, and which need a person. Use your legal duties as a guide. Design one core workflow for all new hires, then add variations (for example, remote onboarding vs on-site, UK vs US).

A basic digital onboarding workflow usually:
1. Sends a secure form to collect personal and payroll data
2. Generates and sends the contract for e-signature
3. Triggers right to work / I-9 checks and other compliance steps
4. Creates the employee record and notifies payroll and IT
5. Assigns induction tasks and training to the new hire and manager
Keep steps short and clear. It should be obvious what the system does and what the manager still needs to do.
Do not try to automate everything in one go. Pick one location or team and run a pilot digital onboarding process for a few months.

After each cohort, check your KPIs and ask a few short questions in a new-starter survey: “What worked well?”, “What was confusing?”, “What felt impersonal?”. Use this to adjust emails, timing and which steps should be automated vs done in person. Over time, this loop is what turns basic onboarding automation into a smooth, AI-ready onboarding journey.

👉If you're managing hourly teams you can set up this whole flow in Shiftbase using HR+ to collect new hire info, generate contracts and track progress from the HR tab, then convert people straight into employees ready for scheduling, time tracking and absence management.

Common automated onboarding pitfalls (and how to avoid them)

Automation solves a lot of onboarding pain, but it can create new problems if you set it up without clear ownership and guardrails.

Pitfall	What it looks like in real life	Fix with automation	Human action you still need
Cold, impersonal onboarding	New hires only get system emails; no welcome or context	Use workflows to schedule welcome calls, buddy tasks and check-ins	Managers must still meet, coach and give feedback
System access delays	People start with no logins, tools or rota	Trigger IT and access tasks as soon as contracts are signed	Agree clear SLAs with IT and check high-risk roles manually
Compliance gaps across locations	Different sites “do their own thing”; checks missed	Standardise right to work / I-9 and policy steps across all workflows	HR must review legal changes (for example, HMRC or DOL updates) regularly
Low completion of digital tasks	Forms and e-learning sit unfinished; chasing happens by email	Set automatic reminders, deadlines and simple mobile access	Ask for feedback if many drop out at the same step
Disconnect between hiring and onboarding	Offer accepted, but onboarding starts late or not at all – a top challenge in recent stats.	Link ATS or hiring status directly to your onboarding workflow	Make someone clearly accountable for “owning” the onboarding process

Ready to automate onboarding with Shiftbase?

If you want to turn your onboarding into a clean, trackable digital flow – from collecting new hire data to sending contracts and getting people ready for their first shift – Shiftbase HR+ is built for exactly that. With HR+ you can collect essential information, generate digital contracts with e-signatures, request documents, and track every step from a central HR dashboard, instead of juggling email threads and manual files.

👉 Learn more about HR+ (Early Access) and see how it streamlines your hiring admin in Shiftbase: Get started with HR+.
✉️ Want to be first in line? Join the HR+ Early Access waitlist so you can start using digital contracts and onboarding flows as soon as they’re available on your plan: Join the HR+ waitlist.
🚀 New to Shiftbase? Try the full workforce management platform – including HRM, scheduling, time tracking and absence management – free for 14 days: Start your free 14-day Shiftbase trial.

In one setup, you can manage contracts and employee records through HR+, then flow people straight into rosters, time tracking and payroll-ready reporting – giving your new hires a smoother start and your managers far less admin.

Employee scheduling and Time-tracking software!

Easy Employee scheduling
Clear time-tracking
Simple absence management

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Frequently Asked Questions

Most experts suggest treating onboarding as a 90-day (or longer) journey, even if paperwork is finished before day one. Onboarding should cover culture, expectations and support over several months, not just a first-day checklist.
No. Automation helps you standardise tasks like collecting HMRC starter information, running right to work checks or sending the correct forms, but the employer is still legally responsible.
Yes – in many cases it helps the most. Digital onboarding and self-service portals mean remote and deskless staff can complete forms, see their rota and read policies from their phone instead of chasing emails. Just make sure they have access to the tech they need and at least one human contact for questions.
AI onboarding tools work well for FAQs, nudges and personalising content, but current guidance from CIPD and others is clear: keep humans in charge of decisions and be transparent about how AI is used.

If AI is used for high-impact decisions (for example, screening or assessments), check local rules such as EU AI Act or city/state laws in the US.
Good starting metrics are:
- Time to complete all onboarding tasks
- Time to productivity
- First-year turnover for new hires
- New-starter satisfaction with onboarding
Recent onboarding research shows that strong, structured onboarding can lift retention by 82% and productivity by over 70%, so you should see movement in these numbers as your onboarding automation matures.