Small Company: Let’s assume it has only a couple of people in the HR department – perhaps an HR Manager and a Generalist. Jim the Generalist is the most likely staff member tasked with fulfilling these administrative duties, and his salary is $45,000. Divide his salary by 2,000 (hours worked in a year assuming a 40-hour work week and 2 weeks worth of vacation) to get his hourly rate. For Jim, that’s $22.50. Multiply his hourly rate by the number of hours saved annually to calculate Small Company’s saved HR labor costs ($22.50 x 87.5 = approx. $1,969)
Medium Company: Since Medium Company is larger than Small Company and hires about 250 employees per year, we can assume that its human resources department is larger and that it has an entry-level HR Assistant to handle the administrative tasks. Anna the HR Assistant has a salary of $32,000. Therefore, her hourly rate can be calculated as $16 ($32,000 / 2,000 = $16). Consequently, we can estimate that Medium Company would save $7,000 in annual HR labor costs ($16 x 437.5 = $7,000).
In both scenarios, consider how the hours saved on administrative minutia can now be applied to more strategic aspects of the employee onboarding process…the items that Jim and Anna never had time to address before…the tasks that really help engage new hires and better equip them to be productive sooner.