Reveal 2019's Avg. Cost for New Employee Onboarding - Start Today
As companies increasingly compete for the best talent available, understanding the cost associated with onboarding a new employee is essential for businesses of all sizes. From background checks to relocation costs, the financial impact of bringing a new hire on board can be considerable, particularly in today's tight labor market. In this article, we'll delve into the average cost of onboarding a new employee in 2019 and explore the methods you can use to make the process as painless, and cost-efficient, as possible.
Table of Contents
- Introduction
- Historical Expense of Onboarding
- The Role of Human Resources
- Benefits of Onboarding
- Typical Expenses of Onboarding
- Optimizing Expenses
- The Impact of Technology
- Conclusion
- Introduction
Introduction Onboarding a new employee can be one of the most exciting times for an organization, but it can also be one of the most expensive. Organizations can easily find themselves spending thousands of dollars on the onboarding process and, in addition, the costs associated with training new hires and technological upgrades. In this post, we will explore the historical expense of onboarding, the role of HR in optimizing such costs, typical expenses, and how technology can have an impact on the overall cost of onboarding. We will also look at strategies for optimizing expenses and the benefits of onboarding. By taking a closer look at the expense associated with onboarding, employers can identify areas to save money while still providing the necessary resources for new employees to do their jobs well.
- Historical Expense of Onboarding
Throughout history, onboarding new employees has always been a prominent expense for businesses, although the exact amount has changed over the years. Onboarding expenses have typically increased when there is high demand for qualified employees, meaning that businesses may have to pay a premium to land the essential positions needed for their operations. In addition to specific hiring costs such as search firms, organizations may need to dedicate internal resources such as HR personnel for onboarding.
In the early 20th century, employees were hired using paper-based processes and a much smaller selection pool than today. As the economy began to grow, jobs grew in complexity and demand for employees increased, causing onboarding expenses to rise. With the introduction of the internet, employee search and filtering capabilities inflated costs even further due to a larger selection pool, with companies having to invest in online tests and recruitment firms in order to land the best employees.
As technology advances and recruiting practices mature, companies have been able to reduce expenses while simultaneously landing qualified employees. Onboarding expenses vary greatly from position to position, with the management and highly specialized positions being the most expensive. At the same time, many organizations are reaping the rewards of technology for onboarding, with automation and software tools simplifying the process and driving down costs.
- The Role of Human Resources
The role of Human Resources is vital when it comes to onboarding new employees. HR departments are responsible for recruiting, onboarding, and orienting new hires. It must be done in a way that maximizes efficiency and ensures that new employees transition smoothly into their positions. HR departments must also consider the costs associated with onboarding, such as training, administrative costs, and travel expenses. The department is responsible for making sure that all new hires have the resources they need to become productive and successful members of the organization.
HR must also ensure that onboarding processes are efficient and streamlined. This entails making sure that all relevant paperwork is filled out correctly and in a timely manner, as well as providing new hires with all the necessary information they will need to understand their roles and duties. Additionally, HR must work with managers and executives to ensure that new hires are placed in the correct roles. Additionally, HR must provide opportunities for new hires to communicate with other employees and senior management.
Overall, the role of Human Resources during the onboarding process is very important. By ensuring a smooth transition and providing new employees with the resources they need to become successful, Human Resources can help provide an excellent onboarding experience for new employees.
- Benefits of Onboarding
Onboarding is more than just hiring a new employee; it is a comprehensive process in which an organization invests resources to ensure that the new hire fits in with the team, understands the culture and has all the tools, skills and information necessary for success. Along with the increased cost of onboarding, the process has many benefits to the organization.
One of the major benefits of onboarding is that it helps new employees transition more quickly and easily into their new roles. Effective onboarding creates opportunities for newcomers to become familiar with the organization, team members, and the goal-setting process. Developing relationships and personal connections within the team can help a new employee increase job satisfaction, morale and engagement.
Onboarding can also reduce the risk of employee turnover. Orientation processes equip new hires with the knowledge and skills they need while providing them with an understanding of the organization’s culture. This helps ensure that newcomers are aware of the expectations and have the resources they need to become productive members of the team.
Finally, effective onboarding ensures that new hires are equipped with the right tools to perform at their peak. Companies that use up-to-date technological resources such as interactive e-learning tools and platforms to onboard new hires optimize the learning process and can improve employee retention.
By taking a comprehensive approach to onboarding, organizations lay the groundwork for a successful start to a long-term relationship with a new employee. Investing in the onboarding process helps ensure that the newcomers have the tools, knowledge and resources they need for success without a large expense to the organization.
- Typical Expenses of Onboarding
Onboarding a new employee requires more than just offering a new hire attractive wages and benefits. Companies must factor in all the expenses associated with recruiting, training, and onboarding a new team member. These typical onboarding expenses include, but may not be limited to, the following:
• Recruiting and advertising: Advertising job openings can be expensive, especially in competitive markets or specialized fields. The more specialized the job is, the higher the associated recruiting and advertising costs.
• Background checks: Many companies conduct background checks on potential employees. Depending on the scope of the background check, costs can vary significantly.
• Training expenses: Training expenses associated with onboarding a new employee depend on the job and whether it requires a license or certification.
• Professional assessments: If applicable, companies often have to assess a potential employee's skills, aptitude, or personality. These assessments can be costly, depending on the scope of the assessment.
• Internal staffing compensation: Once a new employee is hired, some companies employ team members to help train and onboard the new hire. These internal costs can be significant, depending on the role and associated staffing costs.
• Relocation expenses: Relocating an employee can be a major expense for companies looking to fill specialized roles. The costs can include travel, transportation, lodging, meals, and other expenses.
Onboarding a new employee can be an expensive process, but it's necessary for any company looking to grow and succeed. By understanding the associated expenses of onboarding, businesses can better prepare and budget for the onboarding costs.
- Optimizing Expenses
When it comes to onboarding a new employee, it is important to keep expenses in check. There are several ways to optimize expenses related to onboarding and ensure that the necessary resources are available without overspending. By taking a few simple steps, organizations can keep expenses minimized and still provide the best possible onboarding experience for their new employee.
One of the most common ways to reduce costs associated with onboarding is to create processes and procedures that streamline the onboarding process. This could include implementing a training program to ensure all new employees are up-to-date with the organization’s expectations and policies. This can help reduce the need to recruit and retain an outside consultant for onboarding services, resulting in cost-savings.
Another way to reduce costs associated with onboarding is to make sure all required forms are filled out and all required information is collected before the onboarding process begins. This way, time spent on paperwork can be minimised as much as possible and no extra expenses will be incurred.
Additionally, some organizations are choosing to invest in technologies related to onboarding. Technologies such as automated onboarding software and electronic signature tools help organizations streamline the onboarding process, and can help reduce costs significantly in the long run.
Finally, by using subtle techniques such as providing a travel allowance or offering relocation packages, companies can often reduce the expense associated with hiring new employees. By taking these small steps, organizations can reduce the amount of money spent on employee onboarding and still provide the new employee with a great onboarding experience.
By taking advantage of the cost-saving measures discussed above, organizations can reduce the expenses associated with onboarding a new employee while still providing the necessary resources for successful onboarding. This will ultimately benefit the organization and the new employee in the long run.
- The Impact of Technology
Technology has revolutionized the employee onboarding process, enabling businesses to save on time and costs associated with onboarding new hires. Modern technology can decrease the time it takes to hire new employees, process paperwork, and offer a streamlined process for setting up new hires with all the necessary information and training. Automated onboarding programs can be customized to make the process more efficient and cost-efficient for businesses.
Thanks to technology, organizations are now able to automate many of the important steps involved in employee onboarding. This includes providing access to important documents, such as contracts, waivers, or other handbooks, as well as obtaining educational materials, scheduling introductory meetings, and offering online training sessions. Automated onboarding can also help businesses reduce employee turnover and ensure that each new hire is properly equipped to work in their respective roles.
Furthermore, technology can also help HR departments reduce their cost of onboarding by streamlining the paperwork process. This includes a more efficient filing system, automated reminders, and a secure electronic signature process. Automated software can also be used to match new hires with their necessary workspace and equipment, reducing the need for manual paperwork and expediting the process.
In conclusion, the use of technology has positively impacted the cost of onboarding. Automation can dramatically decrease the time it takes to onboard new employees, resulting in significant cost savings. Companies that invest in automated onboarding and paperwork processing systems are sure to benefit from reduced costs and improved employee retention.
- Conclusion
The conclusion of onboarding a new employee in 2019 is that while the average cost can vary depending on the organization's size, resources, and locations, there are various ways to reduce the cost while still providing a successful and effective onboarding experience. Human resources, technological advancements, and strategic planning are key elements of efficiently onboarding new members of staff, and together, these methods can help to minimize the expenses involved. By understanding the advantages of investing in onboarding and taking the appropriate steps to make it a success, organizations can benefit from improved employee loyalty and retention, greater staff productivity, and enhanced performance.
