What’s the real business cost of outdated employee onboarding?


The way people work is more fluid than ever before. The US Bureau of Labor Statistics estimates that the average worker now changes jobs between ten and 15 times during their working life.

And each time a new recruit is brought into a business - there’s a cost; but identifying exactly how much this is has always been a difficult to achieve. The complex and overlapping nature of HR processes mean that many of the resource costs remain hidden.

This is particularly true for employee onboarding.

HR onboarding covers everything that’s required to ensure that a successful job applicant is safely guided into becoming a happy and productive employee. What makes managing this problematic is the admin gap that exists between recruitment processes and HR systems.

This leaves businesses struggling to handle the complex interchange of information that’s required between HR teams, hiring managers and successful applicants. This is typically handled manually with a mixture of emails, documents and phone calls.

Hidden costs revealed

A 2017 global study was commissioned by webonboarding to identify the true cost of onboarding when using a traditional approach. It found that onboarding tasks typically take up 24 percent of HR time, with a cost per new hire of £195 (US $272, AUD $346).

When this is applied to the example of a UK company in the leisure industry which annually recruits between 2-3,000 seasonal employees - that means added costs of £585,000 (US $812,722, AUD $1,038,289).

It’s an administrative drain on resources that can be dramatically cut by switching to a fast and efficient digital onboarding solution; allowing the entire process to be automated and streamlined.

Webonboarding uses cloud-based technology to allow HR managers to track and monitor each and every task on a new hire checklist with all of the data generated being centrally stored and instantly accessible.

Tasks which would previously take days to complete, such as the manual handling of bulk employee information, can be achieved in a matter of minutes with automated processes. The fully scalable nature of webonboarding means it’s equally effective handling five or five thousand new hires.

Importance of employee engagement

But to identify the true cost of outdated onboarding setups, you need to look beyond simple speed and efficiency savings; there’s also the major expense caused by a failure to properly integrate workers into a workplace.

The 2017 study, involving more than 4,000 office workers, found that nearly one-in-five (19 percent) had left jobs within the first few months because of negative first impressions of a company.

High drop-out rates leave businesses covering all of the onboarding costs while experiencing none of the long term benefits. This is why it pays to ensure that new hires are given a positive and engaging experience.

Melanie Guy, Head of HR at webexpenses whose first-hand experience of the challenges involved in handling onboarding led to the development of webonboarding. She said:

“As responsible employers, we can’t afford to be complacent in thinking that the effort and desire to make a good impression can stop once we have made a job offer.

“Candidates are hard won and they rarely pursue opportunities with just one prospective employer so it means constantly striving to be a more attractive proposition to our preferred candidates.

“High on that list is how we treat them - from the first point of contact through to their employment lifecycle with us.”

Smarter onboarding solutions

This is an area where a digital solution can transform the way HR teams are able to handle incoming employees. By removing much of the administrative burden, they’re able to focus on delivering a more effective experience.

As well as handling the essential contracts and documentation for new hires, webonboarding allows onboardees to access any kind of company guide, video or welcome package. It’s an effective way to improve the way that new starters are integrated into an organization.

So, from the short term costs of slow and cumbersome HR processes to the long term impact of increased staff turnover and dropout rates, it really does pay to make the most of smarter tools to better manage employee onboarding.

Webonboarding provides a smarter way to onboard new employees into your business - reducing admin time, boosting efficiency and improving employee engagement.

Find out more about the software here >>

Request a demonstration >> 


Pin It