Key Features to Look for in Onboarding Training Software

Nowadays,HR faces significant challenges with emerging tech and uncertain market conditions continuously changing. According to Techreviewer’s research on the IT labor market in 2024, these shifts will continue. Hence, it is more important than ever for businesses to use the right approach to retain their employees. Around 46% of employees plan to leave their organization in the next three months. The decreasing retention rate can negatively impact businesses. Further, dissatisfied employees can affect a company's productivity. 

Onboarding training software is an effective tool that can help companies in multiple ways. The right onboarding process can result in new hires’ adaptation to roles and better productivity. Proper onboarding training tools can effectively support talent attraction, reskilling, upskilling, and other key HR challenges. Hence, it is unsurprising that the onboarding software market has grown rapidly. It has grown from $1.77 billion in 2024 to $2.12 billion in 2025 at a CAGR of 20.1%.

Many industries, including banking, financial services, information technology, government, healthcare, and others, find onboarding software vital for their organizations. This guide discusses the main features to consider in onboarding training software.

Core Features of Top-Tier Onboarding Software

For seamless integration of newly hired employees and to make the onboarding process efficient, onboarding training software should have the following:

1. Automated Workflows

Workflow automation features help to streamline tedious and repetitive tasks like:

• Course assignment;
• Document submission;
• Compliance checks;
• Deadline reminders and more.
  

2. Document Management & E-Signatures

With document management features, onboarding software can help in paperxless onboarding. The software can seamlessly create, distribute, and manage digital papers while ensuring document security. 

It can help store all onboarding information, such as contracts, compliance forms, and handbooks, in a centralized way. Retrieving the records is also easy and efficient.

3. Compliance and Training Tools

A top-notch onboarding training software should have the appropriate compliance features and training tools, such as:

1. Digital welcome packets for new hires that ensure they fill out role-appropriate forms. This will reduce the HR burden considerably. The documents needed include contracts, offer letters, tax forms, non-disclosure agreements, privacy policies, and more. ‍
2. Compliance training courses help train employees on their legal and ethical duties. All workplaces have state or federal compliance training courses that are mandatory for employees. The courses will also help them understand the policies specific to their company.‍
3. Upskilling and reskilling programs: Top-tier onboarding software often includes features to support upskilling and reskilling initiatives. These programs help employees acquire new skills or enhance existing ones to stay relevant in their roles and adapt to changing industry demands.

Some of the onboarding training tools also provide the following:

• Anti-discrimination courses that train employees on discrimination and workplace harassment policies.  
• Data protection courses help employees understand how to handle sensitive information and remain compliant with laws and regulations.. 
• Safety training vital for manufacturing, construction, and other sectors. First aid and safety standards training programs help to ensure a secure workplace..

4. Integration Capabilities

Integration features help to link the onboarding process with other systems in an organization. This includes the following:

• HRIS (HR Integration System) connects the employee onboarding software with the main HR unit of a company. This will help access relevant employee data and update data across all platforms.
• Payroll integration streamlines the payroll process, making benefits and payroll deductions for new employees efficient.
• Seamless connectivity enhances employee experience. All employee data is accurately synchronized across various platforms, reducing data discrepancies and improving overall efficiency.
• Application Programming Interfaces (APIs) can help support the integration of the employee onboarding software with other systems and software tools in the company. This creates an interconnected ecosystem that improves overall functionality.

Advanced Functionalities for Employee Engagement

Advanced functionalities ensure efficient employee engagement and make the onboarding process more consistent and efficient.  

Customizable Onboarding Paths

A customized onboarding path prepares new hires for their work. It improves engagement and helps them understand the company culture. Using a pre-structured checklist for different roles, such as new hires, managers, and IT, will cover all onboarding aspects. Templates can also be customized for specific company tasks.  Advanced functionalities can include turning the checklists into dynamic paths that allow for:

• Real-time monitoring of the onboarding process
• Automated reminders
• Personalized learning as per the need.

Using branded portals that allow new employees to access vital info, resources, and documents can further enhance the process. The portals can reflect the unique process and policy of the organization. They can help to introduce company culture and the expectations from employees digitally. Some key aspects of integrating company culture include:

• A clear presentation of the core values, mission, and vision of the company 
• Interactions with senior company leaders
• Accurate information about communication protocols, work policies, and daily work-life balance 

Mobile-First Accessibility

Conducting the onboarding process remotely via a tablet or smartphone is essential for new hires. Key mobile-first features include: 

• Mobile apps that enable new hires to complete onboarding tasks on their devices
• Push notifications for task reminders, such as form submissions or training sessions
• Mobile access to essential information, allowing employees to stay informed on the go .

This allows employees to complete tasks regardless of location, provided a stable internet connection exists. 

Interactive Training Modules

Interactive modules are vital to making the training engaging. They help motivate new hires to complete the training effectively. Some important features of interactive training sessions include:

• Quizzes and certifications that enhance engagement.
• Short, focused sessions on specific topics that improve content comprehension
• Multimedia features like images, infographics, animations, and videos
• Gamification components like badges, points, leaderboards, and levels. This helps motivate employees
• Interactive elements such as drag-and-drop activities, clickable images, etc., actively engage employees
• Recall questions, quick polls, and knowledge checks help instructors understand the effectiveness of the training 

Analytics & Reporting

The onboarding training software includes analytics and reporting features that help track progress and measure effectiveness. These features enable HR teams to: 

• Identify areas that need improvement
• Monitor hiring progress
• Assess the effectiveness of the onboarding program
  

Metrics such as completion rates and employee satisfaction highlight trends, pinpoint areas for improvement, and identify bottlenecks. Customizable dashboards and reports allow HR teams to track progress and measure ROI, while also demonstrating the impact of onboarding initiatives to company stakeholders.

Onboarding Software for Small Business: What Matters Most

Onboarding helps boost employee confidence, increases engagement, and improves retention rate. According to Harvard Business Review, effective onboarding can increase employee retention by 50% and boost productivity by 62%.

With the right software, a small business does not need to spend costly HR resources on onboarding. Reduced time, minimal paperwork, and lower overall costs are benefits that small businesses can gain. Some key features to look for in onboarding software for small businesses are:

Affordability & Scalability

Affordable pricing is a key feature to look for. The pricing of the employee onboarding software varies based on the features, provider, and the number of users. It is important to ensure the pricing models are transparent and have no hidden charges. Some of the pricing models include:

• Per-user pricing – A flexible model that allows businesses to scale as they grow.
• Flat fee – A fixed-cost model based on the number of users and features, ideal for businesses with a stable user count.
• Custom pricing – Tailored to a company’s specific needs, making it suitable for businesses requiring a personalized solution.
• Demos or free trials – Some models offer trial periods, allowing companies to test the software before committing to a purchase.
  

Scalability is another vital aspect for small businesses. Using onboarding software that adapts to a company's growing needs is an ideal choice. Scalable software ensures that the business is ready for its future needs.

Ease of Implementation

An ideal employee onboarding software should be easy to use. It should have a user-friendly interface and intuitive navigation. These features ensure that employees have a seamless learning experience. The onboarding process will require minimal training, making it smooth and efficient without much input.

What’s more, small businesses can implement a cost-efficient onboarding process by using pre-built templates. These templates provide a specific structure and help inspire new ideas. They cover all essential aspects of onboarding and are customized to ensure maximum engagement and a higher completion rate.

Essential vs. Nice-to-Have

Small businesses need to know which features to prioritize and which can be added optionally. While some features, like automated workflows and mobile access, are vital, others, like VR onboarding and support in multiple languages, are optional. Here is a table featuring the must-have and optional elements in onboarding software for small businesses:

Choosing the Best Onboarding Software for Small Businesses

Onboarding software for small businesses has many benefits, from increasing productivity to saving time. Using the appropriate software will give the business a structured and automated process. 

This helps to ensure an efficient, seamless, and customized process that fits the needs of the business. New hires will engage fully and be more productive, ensuring better outcomes. Here are the main features to look for in an onboarding software for small business:

Cost-Effective Pricing Models

Effective pricing models help optimize costs, giving small businesses value for their investment. Per-user or monthly plans are ideal compared to enterprise pricing plans.

Flat pricing allows businesses to pay a fixed fee per month. Advantages include:

• Helps businesses to budget and plan for other expenses. 
• Gives them the flexibility needed to scale the plan in the future when the business grows. 
• A flat or fixed pricing will not have unexpected or hidden charges. 

However, this model is not suited for businesses that have unpredictable usage. It is also not ideal for large companies with more users. Choosing a pricing model should be based on the business's specific requirements. This will avoid paying for unwanted or optional services or functionalities.

Pre-Built Templates

Pre-built templates help save time. They allow the business to focus on other vital aspects of the business. The drag-and-drop workflows make it convenient and easy for new hires to learn and complete the required tasks. 

The buttons, text fields, forms, images, and other documents can be accessed without any hassle. These user-friendly templates ensure higher retention and better employee engagement.

Scalability

The employee onboarding software should have features and functionalities that allow room for additions and changes as per the needs of the business. As the business grows, the best onboarding software should adapt to factors like

• Increased hiring volume.
• Remote work hiring.
• Geographical expansions.

The changes in the software should not compromise the efficiency and effectiveness of the tool. Before choosing software, businesses should ensure they do not incur additional costs, provided they remain within the agreed usage limits. The cost of upgrades should not be excessive.

Best Onboarding Software: Top Picks for 2025

The features and functionality of an employee onboarding software decide its efficacy. Here are some of the best onboarding software in 2025.

Future Trends in employee onboarding software

Emerging technologies like AI are transforming the onboarding process, offering new opportunities to enhance efficiency and engagement. Leveraging these innovations can significantly improve a company’s onboarding strategy. Here are some key future trends that will shape the features, functionality, and overall impact of onboarding training software.

AI-Powered Personalization

According to the State of Employee Onboarding in the US report, 68% of organizations use AI in their hiring and onboarding processes. From interactive training modules to AI-generated onboarding courses, AI can tailor onboarding to each new hire's needs.

Gamification

Gamification through scores, quizzes, rewards, badges, and progress bars is a growing trend that can significantly enhance employee engagement. Instead of dull training sessions, employees get a fun, rewarding experience that keeps them motivated, boosts morale, and helps them retain information better.

Remote-First Tools

With remote work becoming a staple for most businesses, using remote-first tools gains precedence. The best onboarding software with advanced remote-first tools can ensure successful outcomes. Some remote tools that boost onboarding include

• Mentor matching: The mentor matching feature uses an intelligent matching algorithm to find the right mentor for employees. Automated recommendations are used to enable mentor matches with high potential.
• Virtual tours: Virtual tours help new hires and existing employees by updating them on the company and its specific features. 3D animations are used, and employees can explore the office space without their presence in the office. 

Conclusion

The right onboarding software helps businesses strike the perfect balance between automation and employee experience. It enhances efficiency, ensures consistency and compliance, and delivers a personalized onboarding process that improves new hires’ satisfaction and retention.

Given the many benefits onboarding software offers, small businesses should prioritize solutions that are cost-effective and easy to use. This guide outlines key features and selection criteria to help businesses navigate the decision-making process.

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