Knowing how to welcome and say goodbye to an employee is just as important for SMEs as it is for large companies. Onboarding and offboarding policies act as an operational safeguard because they shorten the integration curve, reduce turnover, and protect clients, data, and processes.

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Madrid, October 16, 2025.

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What really moves the needle? This is the eternal question many companies ask themselves daily as they search for the formula for business success. Among other factors, having a solid onboarding and offboarding policy significantly impacts key metrics such as productivity, talent retention, and turnover reduction. “Studies show that a good onboarding process can increase performance by up to 50% in the first year and boost the sense of belonging. Likewise, a well-managed offboarding process strengthens the employer brand and can lower turnover costs,” explains Emmanuel Djengue, CEO of Kaatch.co, the leading HR as a Service platform.

“I’m in the right place, I matter here, I know what’s expected of me, I fit in with this company…” These are the thoughts of a professional who is welcomed properly into an organization. Onboarding is essential because it accelerates productivity, since when a person clearly understands their role and reporting lines, they become productive faster. It reduces early turnover and prevents new hires from leaving due to lack of clarity or support. It saves time for team leaders and reinforces company culture and the employer brand, lists Djengue. In an SME, it’s even more critical because margins for error are minimal, warns the Kaatch.co CEO, who reminds us that the cost of turnover in a small or medium-sized company can reach up to 20% of the replaced employee’s annual salary.

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The Value of Being Properly Welcomed

When a company takes the employee welcome process seriously, introducing the new hire to the team, explaining company and role objectives, and helping them adapt to new tools, it shortens the productivity ramp-up curve by up to three weeks, says Djengue. This means the employee becomes fully effective sooner, which inevitably translates into financial savings, as the functions for which they were hired are covered faster. In short, they become productive in less time.

In this sense, the role of HR is essential, especially in an SME, where HR is the architect of onboarding, says the Kaatch.co executive. Only through a tested and automated process can onboarding be efficient and error-free. That’s only possible with a people management professional. When this role is missing, there are more unproductive days because the new hire isn’t properly prepared or administratively onboarded. They feel lost, take longer to perform at 100%, and may even consider leaving the company, increasing turnover risk. There are also legal risks because no one is overseeing compliance with health and safety (PRL), data protection (GDPR), or time-tracking regulations. And what’s worse, these same mistakes will repeat with every new hire because the company lacks a tested onboarding system.

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A Positive Farewell

Arrivals are just as important as departures. Offboarding, often underestimated, is a delicate process where companies put their reputation, brand, and most critical information at stake, explains Djengue. A well-managed exit process protects clients, one of an SME’s most valuable assets, as well as data, finances, and reputation at a particularly vulnerable moment, says the Kaatch.co CEO. Saying goodbye to an employee and doing it right, respecting timing, making them feel comfortable in their decision, and organizing processes and client handovers properly, is crucial in smaller structures, Djengue emphasizes. We must remember that a poorly managed transition can halt sales, delay deliveries, and expose sensitive data.

The best way to prevent problems, he adds, is to systematize the offboarding process and clearly define who is responsible for each task, what gets handed over, closed, or deactivated. A real challenge, when you think about it, reflects the Kaatch.co executive, and one that not everyone is equipped to handle. For that reason, Kaatch.co believes that this process of guidance and management should always be led by an HR professional. This is especially true in the case of dismissals, where the process matters twice as much, you must protect the business while complying with the law and maintaining respectful treatment to avoid conflicts and reputational damage, advises Djengue. He also reminds that in SMEs, doing it right reduces labor risks, legal claims, and data leaks.

Both entry and exit are part of a company’s life cycle; they are not isolated events. Mastering these processes and treating employees with respect always leads to higher engagement, productivity, loyalty, and talent retention, concludes the CEO of Kaatch.co.

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