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Calculating the Expense of New Hire Onboarding

Any business that wants to make sure that new hires quickly become productive members of the team and are assimilated into the company culture must implement the onboarding process. It entails giving new hires the information, abilities, and tools they need to be successful in their positions. However, the process of onboarding can be expensive, involving expenditures for employee time, training materials, & lost productivity. For this reason, it’s critical to estimate onboarding costs in order to guarantee a successful and economical process. Compared to traditional approaches, digital onboarding solutions have a number of benefits, such as lower costs, more effectiveness, & higher levels of engagement. Organizations can reduce the onboarding process and give new hires a more enjoyable experience by utilizing technology.

Digital solutions can be tailored to be interactive, individualized, and accessible from any location, which makes them a practical choice for the company and the new hires. eLearning has become a popular digital onboarding solution. New hires can receive onboarding material from employers quickly & affordably with the help of eLearning solutions. Rather than depending solely on in-person training sessions, companies can design online courses that new hires can finish at their own speed.

This saves time & resources and makes it possible for new hires to go over the information as needed. Also, eLearning solutions can be tailored to the unique requirements of the company and the new hires. Organizations have the ability to design modules that address job-specific training in addition to the company’s policies, procedures, and culture.

Organizations can make sure that newly hired employees receive the information most pertinent to their roles by customizing the content to meet their specific needs. WebXR is another technological advancement that can improve the onboarding procedure. WebXR is a technology that makes it possible to use augmented reality (AR) and virtual reality (VR) on the web to create captivating & immersive experiences. Through the use of WebXR, companies can design interactive onboarding experiences that offer practical training and mimic real-world situations. A manufacturing company, for instance, could use WebXR to make a virtual tour of their production plant, letting new workers explore the various rooms and discover the various procedures.

In addition to making the experience more engaging, this enables new hires to acquaint themselves with the workplace prior to beginning work. Due to the widespread use of smartphones in the modern digital era, mobile applications are a practical and easily accessible means of providing onboarding content. Companies can create smartphone applications that new hires can download to their devices and use anywhere, at any time, to access the information they need.

A variety of onboarding materials, such as job-related resources, interactive tests, and training videos, can be distributed via mobile applications. They can also be utilized to help new hires and their mentors or managers communicate, making the onboarding process run more smoothly. An additional technology that can improve the onboarding procedure is virtual reality (VR). By allowing users to fully submerge themselves in a virtual setting, virtual reality offers a lifelike and unforgettable experience. Organizations can create onboarding experiences that mimic real-world scenarios & offer practical training by utilizing virtual reality. VR could be used, for instance, by a healthcare company to mimic medical procedures, giving new hires a secure setting in which to hone their skills.

This helps new hires gain confidence before they begin working with actual patients, in addition to improving the learning process. There are a number of things that organizations need to take into account when figuring out onboarding costs. These include the price of supplies, the price of instruction, & the price of lost output. Any digital or physical resources required for the onboarding procedure, such as software licenses, training manuals, or videos, are included in the cost of materials.

Companies must account for the costs associated with producing or acquiring these materials as well as any continuing upkeep or updates. The time and materials needed to provide new hires with the onboarding material are included in the training cost. This can cover the cost of any travel or lodging if the training is delivered in-person, as well as the salaries of the trainers or facilitators. The time that new hires spend undergoing training rather than carrying out their job responsibilities is referred to as the cost of lost productivity. While training new hires is required, organizations must account for the impact that this will have on productivity when making decisions.

Lowering onboarding expenses can be greatly aided by technology. Organizations can save time and money by automating some processes, like paperwork and training. For instance, new hires can complete forms online rather than by hand, which relieves HR staff of some of their administrative duties. The onboarding process can be made more efficient by using technology. Organizations can expedite & improve the effectiveness of onboarding training by employing eLearning solutions instead of conventional approaches.

This helps the company save time & lets new hires get started right away. Organizations can get a big return on investment by investing in digital onboarding solutions. These solutions can assist companies in more successfully achieving their onboarding objectives by cutting expenses, boosting productivity, and raising engagement. For instance, companies can reduce costs associated with in-person training sessions, travel expenses, and printed materials by implementing eLearning solutions. They can also shorten the time it takes for recently hired employees to finish their training, enabling them to begin making a contribution to the company right away.

By giving new hires a more personalized and interactive experience, digital onboarding solutions can also increase engagement. In addition to improving job satisfaction and lowering turnover, this can help new hires feel more a part of the company and its culture. To make sure the process is efficient and economical, it’s critical to calculate onboarding costs. Organizations can improve efficiency and lower expenses while providing new hires with an improved onboarding experience by utilizing digital solutions like eLearning, WebXR, mobile applications, and virtual reality.

But in order to make sure that the onboarding process they choose fits both their needs & their budget, businesses should carefully weigh their options. They ought to weigh the benefits and drawbacks of every digital solution and select the ones that best suit their objectives and available resources. In the end, firms may see a large return on their investment by implementing digital onboarding solutions.

These solutions can assist organizations in onboarding new hires more successfully and preparing them for success in their roles by decreasing costs, enhancing efficiency, & raising engagement.


What is onboarding?

Onboarding is the process of integrating a new employee into an organization and familiarizing them with the company’s culture, policies, and procedures.

Why is onboarding important?

Onboarding is important because it helps new employees feel welcome and valued, and it sets them up for success in their new role. It also helps organizations retain employees and improve productivity.

What are the costs associated with onboarding?

The costs associated with onboarding include the time and resources required to train new employees, as well as the cost of any materials or equipment needed for their job.

How much does it cost to onboard a new hire?

The cost of onboarding a new hire can vary depending on the size of the organization, the complexity of the job, and the level of training required. However, studies have shown that the average cost of onboarding a new employee is around $4,000.

What are some ways to reduce the cost of onboarding?

Some ways to reduce the cost of onboarding include using technology to streamline the process, providing online training materials, and using peer-to-peer training instead of hiring outside trainers. It’s also important to have a clear onboarding plan in place to ensure that the process is efficient and effective.

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Published by Designing Digitally

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