The Importance of Onboarding: How Companies Successfully Integrate New Employees and External Service Providers

Pietro Mattina

June 26, 2026
7 minutes

The successful integration of new employees and external specialists is one of the key drivers of modern HR strategies. Structured onboarding is becoming increasingly important from a strategic perspective, especially in times of skilled labor shortages and a growing volume of project work. Companies that view onboarding as merely an administrative process are squandering significant potential in terms of productivity, employee retention, and compliance.

What Does "Onboarding" Mean? Definition and Translation

The term “onboarding” is derived from the English phrase “to take on board” and essentially means “to bring on board.” In an HR context, onboarding describes the structured process of integrating new employees into a company.

From an academic perspective, onboarding is often viewed as part of organizational socialization. It involves not only technical training but also full integration into a company’s organization, culture, and social structures.

Onboarding must be clearly distinguished from simple job training. While job training focuses primarily on operational tasks and processes, onboarding also includes:

social integration into the team
Communicating Corporate Values and Culture
Building a Sense of Direction and Security
long-term commitment to the company

The goal is to literally “bring new employees on board” and ensure their quick and sustainable integration.

Why Onboarding? The Economic Business Case

Structured onboarding is not just a “nice-to-have,” but a key business success factor. Studies—including those by Gallup and Haufe—show that a lack of or inadequate onboarding leads to significantly higher early turnover and longer periods of low productivity.

The economic impact is significant:

Terminations within the first 6 months result in disproportionately high costs
Mismatched hires result in direct recruiting and opportunity costs
Productivity is often not fully achieved until several months have passed (“time to productivity”)

Professional onboarding significantly reduces these risks and has a positive impact on key HR metrics.

This becomes particularly relevant in conjunction with modern HR strategies such as MSP (Managed Service Provider) programs, which holistically optimize recruiting and onboarding processes. In addition, HR analytics enable data-driven management of onboarding KPIs such as retention rate and time to productivity.

Key benefits of a structured onboarding process:

Increasing Employee Retention (Retention Rate)
Reducing Early Turnover
Faster onboarding of new employees
Strengthening Employer Branding

The 4 Phases of a Successful Onboarding Process

Professional onboarding typically follows a structured phased model that systematically guides the integration process.

Phase 1 – Preboarding (Between Signing the Contract and Day 1)

Preboarding refers to the period between signing the contract and the first day of work.

In this phase, the focus is particularly on the following aspects:

ongoing communication with the new employee
Provision of Relevant Documents and Information
Organizational preparation (access points, hardware, systems)
Reducing Uncertainty and Barriers to Entry

A structured pre-boarding process helps prevent dropouts before the first day of work and strengthens emotional engagement early on.

Phase 2 – Orientation and the First Day on the Job

The first day on the job is crucial for the rest of the onboarding process.

Typical components are

A structured welcome at the company
Introduction to Systems, Tools, and Processes
Technical Setup of the Work Environment
Assignment of a buddy under the buddy system

The buddy system is particularly effective in promoting social integration and helping new employees quickly find their bearings in their day-to-day work.

Phase 3 – Academic and Social Integration

During this phase, the actual onboarding process takes place, covering tasks, processes, and team structures.

Key Elements:

structured onboarding plan
regular feedback sessions
Introduction to Corporate Values and Culture
Integration into Project and Team Work

This is where it becomes particularly clear just how well-structured an onboarding process actually is.

Phase 4 – Stabilization & the End of the Probationary Period

The final phase focuses on long-term integration.

Typical measures:

joint goal definitions
Final feedback and development meetings
Evaluation of the Probationary Period
Transition to Normal Operations

In modern HR organizations, this phase is increasingly being linked to talent acquisition processes to create a seamless employee lifecycle—from direct sourcing to onboarding.

The Blind Spot in HR: Onboarding External Staff and Service Providers

While onboarding processes for internal employees are well-established in many companies, one crucial area is often overlooked: the onboarding of external staff.

These include:

Freelancer
external consultants
Temporary workers
Suppliers and Service Providers

These target groups often need to be productive from day one. Inadequate digital onboarding can quickly lead to significant risks in this context.

An Overview of the Challenges:

increased compliance risks (e.g., bogus self-employment)
Uncontrolled system access and data sharing
Inefficient onboarding into projects and tools
Lack of transparency in the use of external resources

This is a critical factor, especially in the context of modern HR compliance. Legal requirements in Germany mandate a clear distinction between different forms of employment, as well as audit-proof documentation of all external assignments.

Possible solutions lie in the digitization of external workforce management.

Systems such as the Vendor Management System (VMS) or Contingent Workforce Management allow for the centralized management and compliant integration of external resources. Supplier management also plays a key role in this process.

For example, MAVES, as a workforce management platform, can be used to automate the provision of access, documents, and compliance checks—including potential integrations with systems such as SAP Fieldglass. This significantly reduces the onboarding time for external specialists while also increasing legal certainty.

Best Practices: Checklist for Seamless Onboarding

Successful onboarding is based on clear structures and repeatable processes. A comprehensive onboarding checklist is a key component of this.

Typical components of a professional onboarding program include:

Complete technical preparation before Day 1
a clearly defined onboarding plan
designated contacts (e.g., buddy or mentor)
regular feedback cycles
Documented compliance and access approvals

To support modern HR teams, EMS provides a free onboarding checklist for external service providers and freelancers in PDF format. This serves as a practical tool for standardizing processes and increasing efficiency.

In addition, EMS’s MSP reference projects demonstrate how companies have been able to operate with measurable efficiency gains while simultaneously reducing risks through structured onboarding and workforce processes.

FAQ: Frequently Asked Questions About the Meaning of Onboarding

What is onboarding?

Onboarding refers to the structured process of introducing and integrating new employees into a company. It encompasses both job-specific training and social and cultural integration.

Why is structured onboarding important?

A structured onboarding process reduces early turnover, lowers costs associated with poor hiring decisions, and enables new employees to become productive more quickly. At the same time, it strengthens employee retention and employer branding.

What is the difference between preboarding and onboarding?

Preboarding refers to the period between signing the contract and the first day of work. Onboarding begins on the first day of work and encompasses the employee’s full integration into the company.

How long does an ideal onboarding process take?

A complete onboarding process typically takes between three and six months and usually ends with the completion of the probationary period.

Why do external service providers and freelancers need to be onboarded as well?

External personnel also need access to systems, processes, and security policies. A structured onboarding process ensures compliance, protects data, and guarantees immediate operational readiness.

How can the onboarding of temporary staff be digitized?

By using workforce management systems such as MAVES, processes such as document management, compliance checks, and system access can be handled in an automated, transparent, and audit-proof manner.