3 Ways Good Employee Onboarding Helps your Bottom Line
Growing your business means having good people behind it. But hiring the best people comes with quite a cost. And to be able to retain them, even more. According to a study from SHRM, the cost-per-hire in the United States is around $4,100 on average. From HR staff wages, operational expenses, to job advertising, all of the things involved in hiring talent comes with a price tag. And you can only get your ROI if you’re able to retain new hires.
Attracting the right talent is essential, but what’s equally crucial is making sure that they stay. Otherwise, you’re looking at a considerable dent on your bottom line.
Setting the tone for new hires
An effective employee onboarding process can set the right tone for new employees and engage them in the early stages of their tenure at your company. It’s a crucial process that sets an employee for success and helps your business financially as a result.
1. Saving on labour costs with automated employee onboarding
Part of employee onboarding involves specific tasks that can be repetitive, time-consuming, and not to mention prone to error when done manually. Examples include filling out forms, encoding employee data, and distributing company documents or guides.
Imagine your recruitment or HR teams devoting huge chunks of their day or worse, rendering overtime because of extensive paperwork, especially if you’re continuously hiring new staff. Those hours could have been spent on sourcing talents or enriching employee engagement in your organisation. It also disrupts work-life balance for your people if they have to work longer shifts to get through all onboarding documents and forms. It’s not healthy for your people, for engaging your new hires, and ultimately for your business.
Time is currency, and you want to make wise use of your hours on things that matter. Automate what you can in your onboarding process. Not only will this streamline the steps, but this will also provide a better experience both for your HR staff and new employees.
Read more: Onboarding: The Employer’s Checklist
When automating your onboarding process, go for a solution that will help you manage everything in one platform, allow you to customise according to your needs, and enable you to go 100% paperless.
Tanda’s paperless employee onboarding helps simplify the process of getting employee details, gathering pre-employment requirements, and sending out-of-company documents and policies. Within a few clicks, new hires can submit necessary information, and your staff can quickly process and integrate them into your existing systems.
2. Decreasing overall turnover rates
Millennial turnovers are costing the US economy $30.5 billion each year, according to estimates from Gallup. Lost dollars could’ve been used on research and development, business expansion, workforce training, or any other area of the business that needs to improve. With more millennials taking over the workforce and if the rate of turnovers from this group don’t change, it’s likely that losses will also go up in the future.
Research from The Boston Consulting Group shows that companies with good onboarding practices have 2.5x times more revenue growth than organisations who pay less attention to onboarding.
Roughly, 75% of the workforce will be comprised of millennials by 2025. But attracting top talent from this generation can be a challenge. In the same report by Deloitte, roughly 70% of millennials don’t see their careers as exclusively being within traditional settings. They said that at some point, they see themselves working independently.
Given the changing state of the workforce, and millennials’ aspirations when it comes to their career and working for an organisation, businesses need to step up not just with attracting talent, but also with engaging them. They need to think of ways to enrich their staff so that they wouldn’t even consider jumping ship or changing career paths. Good employee onboarding is crucial in paving the way for exactly that.
Effective employee onboarding goes beyond paperwork and orientation. It’s designed to help a new hire integrate into the role and the organisation. When done right, it can develop brand champions who are proactively contributing to the organisation. When the process falls short, it can mean turnovers even before the probation period ends and new costs that are yet to be incurred to fill the position again.
3. Getting your ROI faster through retention
According to the MIT Sloan Management Review, it takes 8-26 weeks for a new hire to become fully productive, depending on the position and role.
It’s essential to give a new employee enough time to learn the ropes, build rapport with teammates, and understand the purpose of the organisation. If you play your cards right and invest in efficient employee onboarding tools and processes, you can get a new employee up to speed and contribute to the goals faster.
However, if you choose to stick with mediocre onboarding practices, you risk losing them in the first few weeks or months. As a result, you will need to incur another round of hiring and spend another round of budget on onboarding.
It takes money to grow a business, and a huge expense most organisations have are related to hiring people. While you invest in attracting talent, you should also pay equal attention to engaging them once they have set foot in your organisation. Proper employee onboarding benefits your bottom line and financial health in the long run.
One of the ways to make onboarding efficient automate some of the manual tasks involved in it. Try Tanda today and see how paperless onboarding can help your business.
Awards & Rostering |
How much do full-time staff really cost?
Being in the business of managing staff costs, we often hear people say that casual staff just cost so much more than their full time equivalents. I mean, that extra 25% is a killer, right? Especially for staff who work a fairly consistent schedule each week, it’s almost like free money. For a while there I went along with that, not really giving it much thought. But today the thought struck me – casuals miss out on plenty of benefits afforded to full and part timers, so are they really better off? I decided to investigate further. What follows may surprise you. First – how many days in a year does a full time employee work? Weeks in a Year: 52 Working Days in a Year: 260 So far so good. We’re going to ignore the 1 or 2 days that we’re off by, for the sake of a nice round number. Next, let’s look at this full time employee’s entitlements, in days. Annual Leave: 20 (4 weeks) Personal Leave: 10 (2 weeks) Public Holidays: 10 We’ll assume a 7.6 hour work day and 17.5% leave loading. So how many hours of leave are we paying? Annual Leave – Base: 152 Annual Leave – Loading: 26.6 Personal Leave: 76 Public Holidays: 76 Total Hours of Leave Paid: 330.6 Earlier we calculated how many days of work one can work in a year, now let’s subtract leave taken to get a more accurate figure. Days of Leave Taken: 40 Actual Days Worked in a Year: 220 Actual Hours Worked in a Year: 1672 Divide 330.6 (hours of leave paid) by 1672 (hours worked) and we get 19.77%. Remember, we are comparing this to the 25% loading paid for casual staff. So from this perspective, yes, your full time and part time staff are still cheaper – but only by 5.23%. And even that number is probably on the low side. We ignored long service leave and maternity leave because they are a bit more unreliable. Both they are also costs (or accruals) that can definitely add up! When you take into account the fact that you only have to pay casuals when you need them, it’s easy to see why more and more Australian employers are turning to casual staff. According to the ABS, this has been growing steadily since the 90’s, and today over 1 in 5 jobs in Australia are casual.
Industry Insights |
Why Brisbane is Australia’s Best City for Startups
Since we’ve started flogging time and attendance software at Tanda, our team has bought over 40 airline tickets across Australia. We’ve been to every capital city and done business at hundreds of locations all around Australia. One thing really hit home: Brisbane is the best place to be a startup. Here are five reasons why: 1. Cost of living This is by far the biggest benefit of being in Brisbane; housing and office space are so much more within the price range of a business that’s just starting. This has allowed us to bootstrap to a considerable size without using external funding. 2. Transport This may sound like a small thing. The best advice we got when we were starting our business was “it takes a lot of shoe leather”, meaning we’d spend a lot of time on our feet talking to anyone who’ll meet with us. Driving around Brisbane is so much better than other capital cities. It’s affordable enough, and nothing is too far away. Despite what philosopher Alain de Botton might say about the Riverside Expressway, it’s one of my favourite features of the city. Because Brisbane’s not that big, we can justify having an office outside of the inner city where rent is a bit cheaper, without feeling like we are out of the loop. 3. BCC Brisbane City Council is making a very concerted effort for the future of the city to be digital. I was lucky enough to receive the Lord Mayor’s budding entrepreneur grant and have heard Cr Quirk talk about the city’s plan for the future and I’m excited about growing a business here. 4. Business community There are a number of great communities around start-ups really getting some traction in Brisbane such as River City Labs and iLab. But the other great thing about the city is how many innovative business people are willing to talk to you and lend a hand – which is particularly good for a B2B business! 5. Talent Brisbane has two great technology courses at QUT and UQ, which makes it much easier to attract and retain young talent to help build and grow our business. It’s a much tougher market for employers in other capital cities, especially those with only one technology-focused university. I’d recommend Brisbane as a great place to start a business for anyone considering starting out. The team at Brisbane Marketing & Digital Brisbane have a lot of support available to you on top of the many other benefits.
Awards & Rostering |
Easter Penalty Rates 2015 — What you need to know about paying staff
Easter is coming up soon, and that means two things! A new season of Game of Thrones to feast on, and – perhaps less excitingly – public holiday rates to pay staff. As a business owner, accountant, or bookkeeper, it’s important to be aware of how public holiday rates over Easter and ANZAC Day should be paid in your state. First, let’s see when the holidays will be in 2014. You might be surprised! If your business is open on any of these public holidays, you’ll need to pay staff the appropriate public holiday rates. You should check your award, which will tell you exactly what multiplier or penalties to apply, often under a Public Holidays section. A common multiplier is 2.5x. Some businesses pay staff salaries, or pay casually “above award”. Public holiday penalties still apply! If you have a contract, it should cover this – check with Fair Work if you are unsure. Staff who don’t work on a public holiday If you have full or part time staff who should have worked on any of the weekday public holidays – Good Friday, Easter Monday, and Easter Tuesday in specific cases – they are still entitled to pay, even if they do not work. Generally you’ll pay at base rate for the hours staff would have been entitled to. Of course, if staff do work on the day, you’ll pay at a higher rate as dictated by the award (see above). But keep in mind: this only applies if they usually work on that day. For example, a part timer in Queensland who generally works Tuesday to Thursday probably wouldn’t get paid the public holidays because there’s no public holiday on those weekdays. Check your award/agreement to be sure! If your award dictates how rostered days off work, you should check to see if staff with an RDO on a public holiday are still paid. In some states, some kinds of businesses are not permitted to open on public holidays due to trading regulations. If this applies, you will probably still be required to pay staff who would otherwise work on that weekday. Again, if you’re not sure, it’s best to ask. Staff who work on a day that isn’t a public holiday Keep in mind that the rest of the award doesn’t shut off just because it’s Easter. For example, if you are in Tasmania and pay Saturday rates, you’ll still need to pay these on Easter Saturday (which is not a public holiday for you). Did you know… If an employee takes sick leave around a public holiday (eg. Thursday April 24 to Monday April 28), they still get paid the public holiday if they were otherwise supposed to work that day (ie. full/part time) If an employee takes annual leave, public holidays during the leave period don’t count towards their annual leave balance Public holidays do not need to be paid for staff on unpaid leave Staff cannot be forced to work on a public holiday if they have reasonable grounds for doing so. Common reasons include: the amount of notice given, family responsibilities (especially over Easter), and whether one could reasonably expect the business to be open on a public holiday. Tanda’s employee time clocks automatically interpret industry awards – including public holidays – so you can be sure you paid staff right, without tedious manually data entry Add the Fair Work Infoline to your speed dial, they are always happy to help. The number to call for any payroll queries is 131 394. Note: none of the above constitutes formal payroll advice. Always check with your accountant, bookkeeper, or Fair Work.