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Every company dreams of a quick, easy and affordable new hire onboarding process. However, most companies spend way too much time and money bringing on new hires. Whether you are part of the 36% of companies that lack a structured onboarding process or you are looking to streamline the onboarding process you already have in place- there is room for improvement and savings with an automated process.
According to SHRM (The Society for Human Resource Management), companies spend about $4,100 on a new hire - this cost can be attributed to recruitment, hire and onboarding costs. While this may seem like lot in some cases, it can cost even more with a loose, tedious process making it hard for new employees to engage and focus right out of the gate. Onboarding and orientation is your new employee's first taste of your company structure, which can account for retention and job satisfaction in the long run. A study by O.C. Tanner states that 69% of employees are more likely to stay with a company for at least 3 years after a great onboarding experience. Offering new hires a streamlined, automated process is best achieved with a Human Capital Management (HCM) system. Here are the automated tools and functionalities of an HCM system that you can use to organize, lay-out and implement a time and money saving onboarding process:
The onboarding process can include many moving parts. From important documents to handbook review, asset assignment and tracking, and the organization of training and certifications. Automation offers the most streamline capabilities to capture the necessary steps in onboarding and save the hassle of a manual, time-consuming process.
Automation allows you to build and assign an automated and electronic New Hire Checklist. This checklist includes all the various steps in the onboarding process that the employee is responsible for. You can essentially take your entire paper New Hire Packet and upload it into a Human Capital Management system.
Speaking of New Hire packets… do you have one? Is your Employee Handbook a 500 page manual that gets updated all the time with new information and amendments? How much time do you spend at the printer creating copies? Are you filing these documents in manilla folders and storing them in a filing cabinet? I don’t have to tell you how much this is costing you.
All the necessary forms, like W4, I-9, 1099, can all be uploaded, filled out, signed and submitted electronically in an HCM system. Direct Deposit, EEO surveys and any additional forms are available online for easy access and submission. Even your massive Employee Handbook can be uploaded. The Employee Handbook review is an important part of the onboarding process, giving new hires access to policies, procedures, contact information and more. You can also upload and store any company culture material, benefits enrollment information and more.
With an automated process, you are reducing the risk of lost, damaged or misplaced paperwork, which can slow the onboarding process and be a headache in terms of privacy and confidentiality. Automation also makes it easy for employees to fill out their paperwork. No pens, pages of writing and taking time to turn in items, only for you to manually review and file.
Does your new employee’s position require specific certifications or training for compliance, like CPR, Food and Safety, OSHA, ANCC, AICPA? Then you know how important it is to have this certification in your records and up-to-date. With an HCM system, you can upload certificates and attach an expiration date. This will then send you a notification in advance of the of that date, so you and your employee can prepare for re-certification. Again, this is all housed in the employee record and is easily accessible.
What asset items do your new hires receive on their first day at work? PC/laptops? Phones, faubs, keycards? How do these items get assigned and tracked? Assigning and tracking company assets can be another tedious, time-consuming and very expensive part of your onboarding process. Especially when you consider the cost of replacing lost or stolen items. The Association of Certified Fraud Examiners (ACFE) determined in a 2016 report that businesses lose roughly 5% of annual revenues to employee theft and fraud, with a median loss of $150,000 per organization.
With an automated process and a new hire checklist, new employees can be assigned their items and then those items can be tracked. Proper tracking provides you with data to conduct asset audits and make sure employees return company property if they leave.
After your employee has been onboarded, how often are they requesting to make changes to their information? Change of name or address, life changes like adding a spouse or child to their benefits, requesting perks like gym membership forms- maintaining employee accounts and answering requests take up about 26.1% of your time. With an HCM system, employees can access their employee record information from an easy-to-use portal. They can make account changes and submit requests, which then notifies you when review or approval is needed. You can even automate approvals on certain actions, like name or address changes, to save you even more time. No more clicking through emails to address employee requests, no more shuffling through files and paperwork to make edits. It can all be done, seamlessly on your HCM platform with the New Hire Checklist.
There may be a thousand reasons why an employee can cost money during the course of their employment- projects, promotions, etc, but their onboarding doesn’t have to be one of them. Creating a streamlined new hire process that is automated in an HCM system can eliminate manual tasks, like printing, filing, tracking and handling requests. With standardized and centralized paperwork, process and policies, you knock off human error while giving your employees the freedom to access their account information, saving you time on requests for changes and updates. The advantage of a painless automated process employee, which can give you major retention points. Happy, properly onboarded and trained employees are productive, long-time employees and that can definitely save you.
To learn more about using an HCM for recruiting and onboarding, download our Human Resources Solution Guide: