2026 Average Onboarding Time Statistics: EORs VS Direct Hiring

Check All Average Onboarding Statistics

Here are some of the most important Average Onboarding Statistics that you need to know about.

Global Hiring Benchmarks

100 Days — Average “Time to Start”

PwC Saratoga data shows requisition to day-one runs close to 100 days, because it includes all the post-offer administration.

While many industry snapshots indicate that from requisition to day-one can stretch up to 100 days in certain hiring scenarios (for example, large-scale hires, complex entity set-ups or global mobility), a precise global average for ‘time to start’ across all roles and regions is hard to pin down due to variances in role complexity, compliance requirements and entity readiness.

Illustrative 100-Day 'Time to Start' Timeline

42 Days — Average time-to-fill (2025, industry estimate)

Multiple industry summaries and platform data point to an average time-to-fill a position is around 42 days across broad employer datasets as of 2025, note this varies by country and industry.

44 Days — Average Time-to-Hire

Bersin and AMS analysis shows hiring averages around 44 days in many markets.

EOR Onboarding Timelines

3 Days — Vendor-Reported EOR Onboarding

Many EOR-partnered hires benefit from a streamlined process: once work rights and documentation are in place, onboarding can be completed in as little as 3 days. This reflects the power of using an established employer-of-record entity, as opposed to setting up a local entity from scratch.

Hybrid Onboarding Yields Highest Satisfaction (75 %)

While organizations often debate whether onboarding should be in-person or fully remote, the data says something different: the hybrid model appears to deliver the strongest experience. A 2025 study by TalentLMS and BambooHR found that 75 % of employees who went through a hybrid onboarding process were satisfied with their experience, slightly higher than the 73 % satisfaction rate for in-person onboarding and 71 % for fully remote programmes.

2–6 Weeks, Common EOR Onboarding Range

A 2-6 week onboarding window is typical for many global hires via EORs, especially when local compliance, payroll setup or equipment delivery is involved. This timeline allows for onboarding tasks, training, equipment setup and organizational introductions.

2–10 Days, EOR Vendor Claimed Onboarding Time

Some providers (e.g., Deel, Remote) advertise timelines of 2–10 business days if documents are ready.

1–6 Weeks, EOR Practical Range

Market summaries confirm typical onboarding takes one to six weeks in practice.

2–10 Days, India EOR Onboarding

Indian vendors promote onboarding within 2–10 business days, compared to months for setting up a new entity.

Direct Hiring Bottlenecks

3 Weeks — U.S. Bank Account Setup Time

Trade.gov notes foreign companies usually wait about three weeks to open a U.S. bank account.

24 Hours — UK Company Registration Time

When new companies are registered online in the UK via Companies House, the process can often be completed within 24 hours, provided all required information is submitted correctly and no additional checks are triggered.

4 weeks to 3 months — UK Banking for Non-Residents

Opening a bank account in the UK as a non-resident or non-UK domiciled entity often takes significantly longer than for locals, primarily due to additional identity, address and regulatory checks. Given the complexities, a practical planning window of 4 weeks to up to 3 months is reasonable when setting up UK banking for non-resident hires or entities, particularly when aligned with local payroll, vendor payments or salary flows into GBP.

2–8 Weeks — Germany GmbH Incorporation

For businesses forming a GmbH in Germany, the timeline from starting the process to being formally registered and operational typically falls within 2 to 8 weeks, assuming all documentation is in order and no major bottlenecks occur.

1–2 Cycles — Payroll Stabilization

In a typical scenario, after one to two full payroll runs the payroll process for a new hire is often considered ‘stable’, meaning correct deductions, payments processed without error, and systems aligned. However, actual time will vary based on jurisdiction complexity, benefits setup timing and whether the hire is remote.

1–3 Days — Payroll KYC Checks

For many organizations using digital onboarding tools, the Know Your Customer (KYC) verification process for payroll eligibility now takes just one to three days, assuming all required documents are properly submitted and verified. According to payroll-service provider research, automated KYC systems can validate identity and bank account details “in less than two days” in many cases.

Extra days for statutory enrollments

Mandatory tax and benefit registrations may add days before a hire is fully integrated.

Candidate Checks & Delays

2–5 Business days for background checks

In many hiring processes, standard pre-employment background checks are completed within approximately two to five business days. For example, one employer guide notes that "typically a background check should take between two and five business days.

Weeks to months needed for work Visa processing

Work visa processing timelines today span a wide range, from a few weeks in favorable cases to several months when additional checks are required. In the UK, standard work visa categories list a processing timeline of “about 3 weeks” when everything is in order. In India, visa and work permit applications via an EOR model are typically quoted at 2–6 weeks, though they can extend to 5 months depending on role, country of origin and documentation.

Many sources list “1-3 months” as a practical planning window for visa decisions, especially for global hiring where biographical checks, security screening, host-country labour or immigration clearances are involved.

50% — Candidate Offer Reneging (Backed-Out After Accepting)

Recent data from the Society for Human Resource Management (SHRM) found that 50 % of candidates who accepted a job offer between May 2022 and May 2023 backed out and accepted a position with another employer.

Candidate “Ghosting” on the Rise — A Growing Recruitment Challenge

A 2025 survey found that 88% of HR professionals say they have been ghosted by a candidate during the hiring process. The same study found that 71% reported that the rate of ghosting has increased year-over-year.

Market Growth & Pricing

6.8% CAGR — Global EOR market growth through 2033

Multiple market analyses project sustained EOR sector growth averaging around 6.8% annually from the mid-2020s to early 2030s, as businesses increasingly adopt global employment solutions.

Deel crossed $1B revenue run rate after 75% YoY growth (Q1 2025)

Deel exceeded $1B in annualized revenue for the first time in Q1, powered by a 75% YoY uptick in revenue. This rapid scale, coupled with sustained profitability and growing margins, highlights the surging global demand for EOR and HR tech services.

$199–$1,000+ per employee — EOR Avg Pricing

Public benchmarks show monthly fees ranging from $199 to over $1,000 per employee, or 5–15% of payroll.

Fastest entry model — EOR as Quick Market Entry

Providers promote EOR as the quickest way to hire in a new market without entity setup.

Onboarding Experience & Operations

82% higher retention — Structured onboarding impact

A Brandon Hall/Glassdoor study found that organizations with strong onboarding programs see an average 82% improvement in new-hire retention; they also report >70% gain in early productivity.

High-velocity hiring supported

Case studies show teams filling urgent roles in days-to-weeks through EORs versus months when building an entity.

Lift-and-shift flexibility — EOR to Direct Payroll

Many providers support moving people from EOR payroll to a company’s direct payroll once an entity is ready.

2–3 days — Payment rail guarantees

Some global payroll vendors don’t just process payroll — they also control the payment rails (the actual transfer networks). By bypassing slower intermediary banks, they can guarantee employee funds arrive within 2–3 business days after payroll approval.

Local labor rules extend timelines

Even when you hire through an EOR, you can’t skip local employment law. In unionized or heavily regulated markets, onboarding can still take extra days or weeks because of rules like mandatory notice periods, collective bargaining agreements, or statutory registrations. Example: in parts of Europe, you might need to register with a works council or notify a labor authority before the hire is fully compliant.

Immigration is still external

An EOR can handle payroll and compliance fast, but immigration is always a government-controlled process. If your candidate needs a new work permit or visa, the timeline isn’t days or weeks — it’s often months. The EOR doesn’t change that; at best, they can help with the paperwork. This is the single biggest variable you can’t compress.

Rule of Thumb — Days vs. Months

If the hire already has work rights in the country, onboarding through an EOR is typically a few days to a few weeks (once documents are in). If you need to set up a legal entity and bank account, onboarding stretches into weeks or months. This “rule of thumb” is useful for HR teams setting expectations with hiring managers and executives, it explains why EORs are seen as the fast-entry option for urgent roles.

Onboarding Experience & Productivity

Positive Onboarding Experience Leads to Higher Productivity (70%)

Employees who have a positive onboarding experience are 70% more productive in their roles. This higher productivity often comes from better clarity about expectations, faster confidence in their work, and a stronger sense of belonging.

Quality of Onboarding in U.S. (12%)

Despite the benefits, only 12% of U.S. employees say their company has a good onboarding process. This shows a massive gap between what employees expect and what organizations are currently delivering.

Challenges in Onboarding

Infrastructure Issues (47%)

Almost half (47%) of businesses face onboarding challenges due to infrastructure issues, such as system access, hardware availability, or coordination delays. These logistical problems can slow down the process and create frustration for new hires.

Lack of Onboarding Technology (26.5%)

About 26.5% of HR professionals report that their company lacks dedicated onboarding technology. Without digital tools, HR teams often rely on manual processes, which increases the risk of errors, delays, and a poor employee experience.

26% company lacks dedicated onboarding technology

Engagement Challenges During COVID-19 (51%)

During the COVID-19 pandemic, remote onboarding created unique difficulties. 51% of managers reported that engaging candidates was the hardest challenge. Without in-person interactions, many employees felt disconnected during their first weeks, impacting morale and integration.

51% of managers reported that engaging candidates was the hardest challenge during COVID

Remote Onboarding & Technology Adoption

Adoption of Remote Onboarding (38%)

As remote work grows, onboarding has shifted online. By 2024, 38% of businesses were conducting onboarding through dedicated platforms. These digital-first approaches streamline compliance and training, making remote hiring more scalable.

37% HR Says Lack of Physical Presence Affect Engagement

Even with technology, 37% of HR professionals say the lack of physical presence remains a big challenge. Building culture, trust, and engagement is harder when face-to-face interaction isn’t possible.

Global Onboarding Software Market ($1.7B by 2026)

The demand for onboarding solutions is driving rapid growth in the tech market. By 2026, the global onboarding software market is projected to reach $1.7 billion, reflecting how organizations are investing heavily in tools to improve the employee experience.

global onboarding software market is projected to reach $1.7 billion

Technological Integration (VR & AI)

Forward-looking companies are testing immersive technologies like virtual reality (VR) and advanced AI to create interactive onboarding. This can simulate real work situations and give employees a more hands-on, engaging introduction.

EORs VS Direct Hiring

When you step back and look at the numbers, the pattern is unmistakable: the real difference between EORs and direct hiring is time.

Offers are just the starting gun; what matters is how quickly someone actually makes it to day one. Direct hiring through a new entity often stretches into weeks or months because of banking, registrations, and payroll stabilization.

EORs, by contrast, can cut that lag to days or a few weeks, provided the candidate already has work rights.

Here’s how the two models compare side by side:

EOR vs Direct Hiring: Onboarding Time Comparison

Factor	EOR Onboarding	Direct Hiring (Entity Setup)
Typical Timeline	2–10 days (fast cases) to 1–6 weeks depending on country & complexity	Weeks to several months due to entity formation, banking, payroll setup
Fastest Published Case	Remote cites around 3 days once self-enrolment is complete	UK entity registration can be done in 24 hours, but banking adds weeks
Banking / Payroll	Payroll & payment rails already in place; vendors guarantee 2–3 day payment windows	U.S. bank account takes around 3 weeks; UK non-resident banking 4 weeks–3 months; payroll stabilization 1–2 cycles
Immigration / Work Rights	EOR cannot shorten visa/work permit timelines, still weeks to months	Same limitation; entity route also requires immigration compliance
Compliance Tasks	EOR handles tax, statutory registrations, benefits; usually days to weeks	Company must register for taxes, benefits, labor authority filings — adds extra days/weeks
Candidate Experience	Faster start reduces dropouts; structured onboarding linked to 82% better retention	Longer delays raise risk of reneging/ghosting (up to 50% of offers withdrawn)
Best Use Case	Urgent hiring, market entry, distributed teams, testing new regions	Long-term presence, high-volume hiring, full local control

The table makes the trade-off clear: EORs buy speed and flexibility, while entities buy long-term control. Neither model erases visa processing or local labor rules, but the gap in how quickly you can pay and onboard people is dramatic.

The practical takeaway for HR and business leaders is simple:

If you need immediate capacity in a new market or want to minimize the risk of candidates backing out during long delays, an EOR is your fast-entry tool.
If you’re planning sustained hiring at scale, building an entity in parallel is worth it, with the understanding that the first hires will take longer to get on payroll.

By using both strategies together, fast EOR onboarding now, entity setup in the background, you keep projects moving, retain talent, and avoid surprises down the road.

Manjuri Dutta

Manjuri Dutta is the co-founder and Content Editor of HR Stacks, a leading HR tech and workforce management review platform, and EmployerRecords.com, specializing in Employer-of-Record services for global hiring. She brings a thoughtful and expert voice to articles designed to inform HR leaders, practitioners, and tech buyers alike.

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Shreyashi

Shreyashi is a content writer with over 5 years of experience, specializing in the HR and workplace technology space. She focuses on creating insightful, research-driven content that helps HR professionals navigate the evolving world of talent, tech, and people strategy.

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Statistics Sources

Employ Recruiter Nation Report

HR Dive

Remote.com

Deel

Trade.gov

GOV.UK

Business Growth Service

Next Level Jobs

European Union

SHRM

Business Research Insights

Valuates Reports

Randstad USA

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