What are the real onboarding costs for new hires?
Do you know how much your onboarding process is really costing your company? Are you aware of all of the many miniscule details and costs related to bringing a new employee into the company and onto the team? According to SHRM.org, the cost of onboarding a new hire exceeds $4,100.
The key to understanding where you’re spending the most money and where a change in your current process would make the most impact. Often, that’s during the new hire onboarding process. Why? Because the ease and efficiency of signing the paperwork and filling in all the blanks with the right information is indicative of the efficiency of any given organization. The longer it takes to onboard, the longer it takes to fill the position with someone who can adequately perform the open role.
Perhaps your current solution reflects more of the traditional “in-person” onboarding approach. This manual method typically involves providing the required paperwork to set up a new hire for payroll, benefits and IT. In addition, it probably involves some level of new employee orientation, combined with a stack of learning materials delivered to the new hire’s cubicle by the office administrator on Day One. This typical, paper-driver onboarding process is most often only measured by compliance.
It’s also very antiquated.
How to calculate onboarding costs
It’s time to figure out what all that manual, in-person employee onboarding is costing your organization. We designed a free, easy-to-use onboarding calculator worksheet that provides you with an actual comprehensive overview of how much money your organization is spending on employee onboarding. It even includes shipping and mailing costs you may have forgotten to include!
Complete our simple form to find out how and where your onboarding budget dollars are being spent. Not happy with your onboarding calculator results? Then maybe it’s time to talk to a Click Boarding employe journey expert and learn how to decrease your new hire costs while increasing your company’s ROI.
These onboarding statistics show how costly the lack of employee onboarding can be:
- The average cost of replacing an employee is between 16% and 20% of that employee’s annual salary. (source)
- The organizational costs of employee turnover are estimated to range between 100% and 300% of the replaced employee’s salary. (source)
- Approximately 23% of new hires leave the company before their first anniversary. (source)
- In the U.S. and U.K., an estimated $37 billion is spent annually to keep unproductive employees who don’t understand their job. (source)
- A disappointing 60% of companies fail to set milestones or goals for new hires. (source)
Umm, let’s stop while we’re ahead, shall we? You get it, and the point is clear: it’s overwhelmingly evident that onboarding plays a critical role within the entire employee journey as well as an employee’s longevity at an organization.
What are the benefits of Click’s employee journey software?
Click’s platform empowers HR professionals to successfully do their jobs easily, efficiently and effectively. Our onboarding software goes above and beyond, delivering rich onboarding experiences with our best-in-class capabilities:
- Data protection & security
Rest assured, your data is safe with Click. Our platform is SOC 2 Type 2 and GDPR compliant, so your company and employee data is protected for your total peace of mind.
Paper processes pose risk. Click enables customers to be compliant, wherever they are on the globe, by auto-populating the data you already know so employees can complete the necessary forms promptly and accurately.
- Employee experience
You want to “wow” new hires and reinforce their decision to say “yes” to your company. Because most candidates can have multiple offers on the table – espeically the hyper-talented superstars – it’s critical to make them feel like they made the right decision.
- Higher ROI
With our free onboaring calculator, you’ll discover exactly how much your company can save on new employee onboarding costs with Click’s mobile-first, digital onboarding platform. Trust us: the numbers will delight you!
To estimate your company’s actual employee onboarding costs, download our free onboarding cost calculator! For a more detailed analysis of your needs as well as specific long-term savings you can bring back to your business, our Conulting Practice is here to help.