How much does manual onboarding cost?

Have you ever calculated the cost of manual onboarding for new employees?  Hiring new employees generates a considerable costs for most businesses.  There are so many things to consider when looking at the cost of hiring a new employees.  Most organisations evaluate the costs of advertising, recruitment and agency fees, but few consider the costs associated with onboarding a successful candidate.  Here we consider the costs associated with manually onboarding 100 successful new employees a year.


Manual administration and tracking of employee paperwork

How much time does your HR Team spend manually preparing new employee packs? It is not uncommon for each new employee pack to take an hour to prepare and a further hour of follow up and consolidation time making sure everything is completed.  If you business is hiring 100 employees each year, this adds up to 200 hours a year.


Time spent by an employee completing their forms on the job.

It is fairly typical for a new employee to be given time to complete their new employee paperwork during their first week of employment.  New employees can spend anywhere from a couple of hours to an entire day completing their paperwork.  They also spend a considerable amount of time reading policies and familiarising themselves with the organisation.  If you consider on average each new employee spends around 4 hours completing their onboarding experience, this can add up to 400 hours per year.


Manually provisioning a new employee

Acceptance of an employment contract, is usually the trigger point for provisioning a new employee within the organisation.  This typically involves emailing the relevant divisions to set up IT systems and property security clearance.  It also involves notifying the relevant parties such as the manager and cost centre owner.  Getting this right is essential to a smooth first day and you are easily looking at another 100 hours per year.


Double handling of data when updating information into other systems such as payroll,  HRIS and rostering systems

Manually rekeying the new employee information into other IT systems can take anywhere from 15 to 30 minutes.  If you are entering this information in both a HRIS & Payroll system, this adds up to 60 – 100 hours per year.


Total cost of manual onboarding processing time

So far, we have accounted up to 800 hours per year to support a manual onboarding program for 100 employees.  This time covers both the time to prepare, deliver and track new employees onboarding.  Also included is the time spent by the employee completing their onboarding administration.


*Return on investment (ROI) outcome is based on a 24 month subscription to on the premium package.  Estimated savings are based on average timings of fully manual onboarding within a small to medium enterprise and may vary within your organisation.

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