Developing and documenting a robust onboarding process can be challenging and costly. Ineffective onboarding costs Companies millions of dollars annually when new hires quit before reaching productivity goals.
An effective onboarding software program can save a small company money and time. It liberates labor hours that can be redirected to more important activities like mentoring, training university development, KPI evaluation, employee recognition, and new hire feedback sessions.
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Cost of Hiring
When hiring an onboarding software vendor, you can expect to pay a monthly or yearly subscription fee. You also have to consider internal costs related to the implementation and use of the platform.
These internal costs can include the cost of salaried staff members who will be dedicated to implementing the tool. They may also include the cost of training materials and instructor or facilitator fees. Other internal costs include administrative expenses, including time spent filtering candidates, interviewing, and preparing hiring paperwork.
A well-implemented onboarding process can cut these costs, allowing employees to sign documents electronically and reducing the time and paper needed. Additionally, many onboarding systems feature an employee self-service component for completing tasks such as filling out paperwork, signing up for benefits, and purchasing supplies. This can save a business thousands of dollars in administrative and printing costs. In addition, high turnover can cost a company thousands in recruiting and training costs and lost productivity.
Cost of Training
It takes time and human effort to integrate a new hire into a role, a team, and an organization. While there are many costs associated with training a new hire, implementing an effective software onboarding process can reduce these expenses in the long run.
Choosing the right onboarding software is an essential business decision. It requires comparing features against your company’s needs and asking for your team’s input. It also involves calculating the cost of switching software vendors in the future, which should be factored into the total expense.
Cost of Turnover
When an employee leaves, it costs the company more than just money. There are soft costs like the time it takes managers or other leaders to fill that role and lost productivity while the position remains empty.
In addition, other employees may feel like they’re next on the chopping block, which can create tension and competition among teams. When the turnover rate is high, it can cause chaos for HR professionals, who have to spend time rescheduling meetings and coordinating training for new hires.
An onboarding software vendor can help companies reduce turnover costs by creating a smoother transition for new employees. This can be done by automating workflows to guide a new hire from one task to the next. Many solutions also offer features that allow for e-signatures on internal documents and a self-service portal for things like benefits and PTO tracking. With these tools, HR professionals can focus on the bigger picture and know their time is being spent efficiently.
Cost of Retention
An effective onboarding process will reduce your overall turnover rates and increase the amount of time before new hires reach full productivity. This will save you the cost of hiring and training a new employee and improve employee morale.
Streamline onboarding with a solution that automates tasks, assigns workflows and reminders, and provides an easy-to-use interface. This will help your employees and managers focus on delivering great customer service and increasing revenue.
A streamlined onboarding process is more than just an investment in software – it’s also an investment in your people. Studies show that companies with strong onboarding programs have a more stable workforce and experience less turnover. A positive onboarding experience can increase the number of years an employee stays with your company, significantly impacting your bottom line. A good onboarding program will also help your employees feel valued and connected to the organization, boosting engagement and increasing retention.
