Whenever you hire a new employee, there are always going to be onboarding costs associated with that new hire. But what are the typical onboarding costs for new employees and what can companies do to reduce those costs? Let’s take a look.
The most common onboarding costs for new employees
The onboarding process is critical for helping new employees feel welcome and making sure they’re able to adjust to their new roles. However, it can also be costly, particularly for companies that have a lot of turnover. The typical onboarding costs for new employees include:
New Employee Orientations
New Employee Training materials
Lost productivity During Training
Many companies try to offset these costs by investing in employee retention programs. These programs can range from simple initiatives, like offering more flexible work hours, to more elaborate efforts, such as providing mentorship opportunities.
By taking steps to reduce turnover and investing in employee development, companies can help minimize the financial impact of onboarding new employees.
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New employee orientation: How to offset costs
New Employee Orientation (NEO) is important for both the employer and the employee. For the employer, it is an opportunity to ensure that the new hire has all of the information they need to be successful in their new role. It is also a chance to build a rapport with the new employee and set expectations for their behavior and performance.
For the employee, NEO is an opportunity to learn about their new workplace, meet their colleagues, and get a feel for the company culture. NEO can be costly for employers, especially if it is not done properly.
The cost of NEO includes both direct costs, such as the price of materials and training, and indirect costs, such as lost productivity during orientation. However, many employers believe that the benefits of NEO outweigh the costs.
There are a few simple ways to reduce the cost of a new employee orientation, while still ensuring that the employee receives the information they need. Here’s what you can do:
Leverage technology, such as online training modules or video conferencing, and create repeatable material.
Tap into the expertise of existing employees and have them serve as mentors or trainers for the new hire.
Eliminate unnecessary elements from the orientation, such as extended lunches or social events. (These can always be worked into work days later.)
New employee training materials: How to offset costs
When onboarding new employees, it is important to provide them with the training and resources they need to be successful in their role. Depending on the position, this might include materials on the company's history, culture, and values; an overview of the products or services offered; and specific instructions on how to perform essential job tasks. In addition, new employees should be given a chance to shadow more experienced workers and ask questions.
The cost of creating and supplying a new employee with these training materials can vary greatly depending on the type of business and the scope of the training. However, there are simple things you can do to reduce the time and money spent on new employee training material.
Create permanent resource hubs for each specific job duty or department. These can be updated on a regular basis and used as a learning center for a new hire.
Leverage HR and have them work with individual employees to create repeatable training material for new hires. These can be updated on an annual basis and used for any new hire.
Work with your team to compile a repository of online resources relevant to learning a new role – anything from YouTube videos to written guides.
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Loss of productivity: How to offset costs
Any business owner knows that employee productivity is essential to the success of the company. When a new employee is onboarded, there is always a risk of reduced productivity as the employee adjusts to their new role – and this can boil down to a lot of lost time and money. However, there are steps that businesses can take to minimize this risk.
First, it is important to provide clear and concise training materials that cover all the essential aspects of the job.
Second, make sure that the new employee has a dedicated point of contact who can answer any questions and offer guidance as needed.
Finally, create an onboarding schedule that allows ample time for the new employee to get acclimated to their surroundings and learn the ropes.
By taking these simple steps, businesses can help to ensure a smooth transition for new employees and minimize any loss in productivity.