Onboarding costs for a smooth and sound transition
With employee turnover, organizations spend precious time, energy and money to refill empty job positions. As discussed in previous posts, these expenses include: initial costs due to a person leaving, lost productivity costs, recruitment costs and, finally, onboarding costs.
Making the offer to the candidate is the first step, but the most important part of the process begins once they've accepted the offer. It's all about how you make that person comfortable with their new expectations.
Once you've undergone careful recruitment and selection and found your new top talent, it's time to bring them onboard and expedite time to productivity. An effective onboarding process ensures new hires feel welcomed, prepared, and gives them the confidence and resources to do their job well. And remember, the onboarding process should be more than just a checklist!
Be prepared to have onboarding costs, including the time and effort of managers, HR staff and that of the new hire. But the more smoothly and effectively new employees are settled in with the company, the better the chances of increased productivity, workplace engagement, and reduced turnover. These costs include both new-hire and training costs.
New Hire Costs
In calculating new hire costs, you need to consider the valuable time of your HR staff, assistants and tech support. They spend more time with onboarding procedures than you may realize. These costs include: administering onboarding paperwork and payroll forms, establishing computer passwords, email accounts and telephone hookups, creating security badges and business cards, and leasing equipment.
Training Costs
Managers, team incumbents and the new hire all participate in effective onboarding training, and their time spent should be factored into the overall cost. From the start of the employee's first day, there is the cost of orientation, training sessions, company manuals, training materials and equipment.
As you can see, these costs add up, not to mention the time and lost productivity of supervisors and administrative staff involved in the onboarding process. That's why it's critical to onboard new employees as effectively as possible and JV Consulting can help!
