Why you should review employee onboarding costs for the new financial year

 

fiscal year

Taking stock is one of those tasks that’s traditionally done at the end of each financial year. But the phrase ‘taking stock’ also perfectly describes the more general overview of business processes and operations that should take place.

It’s an ideal time on the business calendar to look for ways to tighten up and streamline every aspect of an organisation as well as improve in the next financial year. One area that deserves special attention is the way that you handle bringing new hires into your business and the potential costs to a business

It’s an often overlooked area of operations which so many companies are failing to properly manage. The basic problem is caused by an administrative gap that exists within companies between their recruitment processes and HR services.

This is the tricky and time consuming task of making sure a successful job applicant is safely guided into becoming a fully integrated and productive staff member. This employee onboarding process is estimated to take up nearly a quarter (24 percent) of HR time.

Slow and frustrating processes

Inefficiencies are caused by HR teams having to rely on traditional communication methods to handle the complex interchange of information that’s required between HR, hiring managers and new starters. Typically, this is done via a mix of phone calls, emails and paperwork.

It creates a slow and error prone process with HR teams having to keep track of a scattering of different documents, schedules and work processes. It creates frustration and efficiency for HR while delivering a negative experience to onboardees.

The problems are multiplied by the scale and frequency of new hires that a business requires. For any company planning to expand during the financial year ahead, it makes this a vital area to be reviewed.

The solution for an increasing number of businesses is a move to digital onboarding software that streamline the entire process. A system such as webonboarding combines automated tasks and cloud-based technology to provide a simple, fast and efficient way to handle onboarding.

Smarter onboarding practices

All of the information is handled digitally with everything from contracts and references to medical details and company guides being delivered to new hires via an online portal. It allows a HR team to easily monitor, track and schedule each stage of the process.

The benefits delivered to a company go further than simple speed and efficiency savings. Any business considering switching to digital also has to take account of the long term costs of a misfiring onboarding setup.

A 2017 global survey of more than 4,000 employees found that 39 percent had experienced negative onboarding experiences. And for 15 percent this had resulted in them abandoning plans to join a company during the onboarding process.

For those who do become employees, these negative first impressions can lead to an increased early dropout rate. Almost one-in-five (19 percent) said they had left jobs within the first few months.

Reduced costs, better experiences

With the typical cost of onboarding being £195 per new hire, the financial impact of these additional recruitment demands can be a significant drain on resources. There’s also the less quantifiable costs of bringing unhappy employees into a workforce.

By removing inefficiency from employee onboarding, a cloud-based system can provide a much more engaging and welcoming experiences for onboardees. The online portal handles not only the essential paperwork tasks but also any kind of guides or welcome packages that help to ease a new recruit into a company culture.

So for any business that’s looking for ways to tighten and improve work processes for the new financial year, employee onboarding is a great area to explore. The switch to an onboarding software solution can reduce HR costs while delivering a more positive and engaging experience for employees entering your company.

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

Pin It
linkedin2
twitter2