Onboarding is the act of bringing a new employee into your company. It typically involves orientation, training, personnel paperwork, and other sundry items. All of those things cost money, but do you know how much? Understanding the costs of onboarding will help you eliminate unnecessary spending, make good hiring choices from the start, and maximize your investment into your new employee. Here are the real onboarding costs for each new start.
Administrative Processes and Paperwork
In business, paperwork never ends. Even if you switch over to electronic information, there are still a lot of forms that need to be completed. Tax forms, benefits enrollment, the employee handbook, and legal documents like an NDA or Non-Compete. And the cost of the actual paperwork isn’t high, but what about the time it takes to administer all of it? That’s what will eat into your budget when you have to oversee all of these tasks and the people who do them.
Turnover of Employees within 90 Days
A staggering number of people leave a new job within the first 90 days. Many of them will know within 30 days whether or not a job is the right fit for them. There may even be some people who don’t return after their first day. For every employee who leaves, you’re absorbing the costs of their onboarding and replacement. But there are studies that show structured onboarding programs help give new employees the confidence they need to stay with your company
Lower Productivity during Onboarding
However, even with a good onboarding program, you need to consider the deferred productivity your new employees will have. While they’re training, they’re not producing. They will simply get less work done while they’re learning your company’s systems and processes. And it can take up to eight months for them to reach their standard level of productivity. Make sure you’re meeting with your new team member regularly to answer questions and keep them on track.
Office Equipment Setup
While a lot of these examples are non-tangible, there is the physical cost of onboarding a new employee. Each one will need a fully set up office to handle their job. This could be desks and office chairs or even computers or phones. In order to reduce your budget, create a system. Keep track of the items your new employees need and be sure to have them ready when someone starts with your company.
Work With a Top Staffing Agency in Dallas TX
Do you want to maximize your onboarding process for success? Contact CornerStone Staffing today to work with a leading staffing agency in Dallas TX to learn more today.