Hidden Costs Of Onboarding New Employees And The Best Ways To Avoid Them

The cost of hiring a new employee is calculated by most organizations on a regular basis as it helps them to assess and assign a realistic budget for the recruitment process. However, in most cases, these calculations are inaccurate as they do not include the hidden cost of onboarding new employees. Since employee onboarding forms an integral part of the recruitment process, any hidden costs associated with the process need to include in the overall hiring cost of employee in Germany. In order to ensure the same, it is essential for hiring organizations to first gain a better understanding of the below-discussed factors that make up these hidden costs.

Provisions For New Employees During Onboarding

Even during the onboarding period, new employees need to be provided with some basic provisions which might be essential for their proper functioning. The stuff might range from a new work desk to a laptop and key fobs to parking permits, the costs of which are generally not included in the hiring expenses.

While it might be impossible to eliminate these costs completely, issuing the stuff to new employees through a responsible provisioning strategy can help bring down this hidden cost. The organizations should also follow a standard process to keep track of all the provisions being made available to the new employees.

Deferred Productivity Of New Employees

It is an established fact that new employees cannot be expected to become productive immediately after joining the organization. The time taken by the employees to gain a better understanding of their role within the company and become acclimatized with the work culture is a period of minimum productivity for them. However, this reduction in productivity does not impact the benefits and perks they are to receive at the end of the month.

One way of avoiding this cost is to include any training and mentoring the employees are to receive in the onboarding process itself. This ensures that the employees spend more time in learning key aspects that can help them to become fully productive within the minimum possible time. They can also be assigned small projects as a part of the onboarding process to provide them an opportunity to test their skills and competence in a new work environment.

Early Turnover Of New Employees

The decision of an employee to quit the job during or after the onboarding process turns weeks of effort and hard work of the hiring organization to dust. In such situations, the organizations generally focus on the loss suffered by them in terms of the amount calculated by professionals of payroll Germany in lieu of the salary and benefits of the employee. However, they tend to overlook the loss of administrative time, paperwork and resources invested on the employees during the onboarding process.

In order to avoid this hidden cost and prevent the early turnover of the employees, it is important for the organizations to follow a more intentional and structured onboarding process. Such a program helps in establishing clear expectations for the employees and prepares them to attain success in their new role and environment besides enhancing their confidence and sense of self-assurance.