Enter the number of new hires, time spent on onboarding per hire, cost of the employee’s time per hour, cost of materials for onboarding per hire, and cost of software or tools for onboarding into the calculator to determine the total onboarding cost.
Onboarding Cost Formula
The following formula is used to calculate the onboarding cost.
OC = (N * T * C) + M + S
Variables:
- OC is the total onboarding cost ($)
- N is the number of new hires
- T is the time spent on onboarding per hire (hours)
- C is the cost of the employee’s time per hour ($)
- M is the cost of materials for onboarding per hire ($)
- S is the cost of software or tools for onboarding ($)
To calculate the onboarding cost, multiply the number of new hires by the time spent on onboarding per hire and the cost of the employee’s time per hour. Add the cost of materials for onboarding per hire and the cost of software or tools for onboarding to the result.
What is an Onboarding Cost?
Onboarding cost refers to the total amount of money and resources a company spends to integrate a new employee into the organization. This includes costs associated with recruitment, training, equipment, administrative processing, and any other expenses related to bringing the new hire up to speed with their role and the company’s operations. The goal of onboarding is to make the transition as smooth as possible, ensuring the new employee becomes productive and engaged quickly.
