Studies show that the cost of hiring new employees continues to grow annually. Given this fact, many employers are looking for viable ways to improve their onboarding practices while boosting the return on their investment. To meet this demand, organizations are turning to automated employee onboarding systems to help streamline the process. These systems allow employers to vastly improve the onboarding process in an effort to cut costs, while simultaneously improving efficiency.
Automated employee onboarding systems offer a great ROI. Here is a look at how integrating automated employee onboarding solutions can benefit your bottom line.
New hire paperwork is not only cumbersome for the new employees and your HR department, but it can also be quite costly. Your staff must make copies of training materials, personnel policies, benefit enrollment forms and tax forms, just to name a few. While the paper, ink and folders may seem inconsequential, the time your staff put in is not.
A report by the Center for Economic and Business Research showed that the administrative costs, including producing and processing paperwork for new hires, averages at about 2.3 percent of the full hiring costs. With experts stating that the average cost per hire ranges from just over $4,000 to $240,000, administrative costs alone could cost you anywhere from hundreds to thousands of dollars per hire. This doesn't even take into account the cost and compliance issues associated with employee errors that may result from transferring data from the new hire paperwork into the company's system.
Automated employee onboarding solutions can help to reduce these costs by allowing your HR team to digitize nearly all of the necessary onboarding paperwork. By automating this new hire paperwork, your staff no longer needs to waste paper and valuable time copying and organizing orientation packets for your new hires. Allowing new employees to enter their own data automatically also minimizes the risk of costly errors and compliance issues.
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