How to Calculate the Cost of Onboarding

01.02.22 09:14 AM By Victoria Akinwande

What is onboarding?

Onboarding is a terminology used in the human resources sector to describe the process of integrating a newly hired employee into a company. Onboarding, also known as organizational socialization, is a vital aspect of assisting employees in understanding their new role and responsibilities. It’s the procedure that allows them to blend in with the rest of the organization.

What could these costs include?

Onboarding includes:Job offersSalary negotiationNew hire paperworkPolicy and culture trainingJob trainingMain factors that contribute to onboarding costs include:The number of onboards.Of course, an increase in the number of positions in your company can be a positive indication that things are going well. However, it’s critical that you attract the best individuals for your open roles. Otherwise, you’ll be paying to hire applicants who aren’t a good fit for the job, only to lose them once you or they realize the work isn’t right for them.Time spent preparing offers.Consider automating the offer development stage with dynamic contract templates or using an online system to remove printing and mailing time to speed up this process.Time and cost of the candidate in their first weekThe average employee takes four days to adjust to their new position. Make sure candidates are ready to go from Day 1 to keep these costs minimal!Price of onboarding training and materials.There will be a financial loss from training, whether it is a dummy version of a program your staff will use every day or if it is wasting products as they learn to build whatever items the company produces.

What is the average cost?

Onboarding costs comprise all the equipment and working hours involved in helping a new hire successfully transition into your organization. According to LinkedIn, the average cost of onboarding new employees is $3000.For your company, onboarding will be a recurring expense. Whether or not it happens as a result of expansion or turnover is determined by how you handle onboarding. Taking the time to learn about the various advantages of good onboarding will help you make the best decisions for the future of your company.Xceed365 is here to help, and to lower the costs of onboarding. Schedule a FREE consultation to find out how Xceed365 can help you build a thriving culture within your company at https://xceed365.com/consultation