Average Cost to Onboard a New Employee
When talking about the average cost to onboard a new employee, we should differentiate it from the average cost per new hire. The latter refers to the total cost of filling an open position from the moment of drafting the job position to finish. The average cost to onboard a new employee refers to the cost of helping a new hire transition into their new role.
Estimates from SHRM place the average cost per hire across organizations and industries at $4,125. The average cost to onboard a new employee is approximately $3,000.
Using a Pre & Onboarding Software Helps Save on the Cost of Onboarding a New Employee
Investing in new employees is a prerequisite for any employer. Regardless of their level of seniority, the company has to account for the cost to onboard a new employee. Even filing paperwork takes resources away from a normal workflow that would have otherwise generated profit to the company.
Notwithstanding, when onboarding is an effective process and resources are well spent with the view of engaging and empowering you to do your best in your new job, the cost of onboarding a new hire will not be outweighed by the financial loss due to high turnover.
By investing in a software solution that is easily customisable, and that allows for the implementation of a structured and effective Pre & Onboarding programme, such as introdus, employee onboarding software, the employee will be engaged as early as signing the contract. This will ensure that the cost of onboarding a new employee is not overshadowed by the cost of lost talent and unfulfilled potential.
Digitising the Onboarding Process is necessary, not for the sake of digitising, but to provide you with a seamless experience, which in turn assures your employer of a high cost-benefit ratio.