written by Khatabook | August 24, 2022

The True Cost of Onboarding a New Remote Employee (IT Equipment Perspective)

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Table of Content


Remote working is no longer an emergency solution, but a permanent staffing approach. Organizations are not confined to cities or national borders when recruiting talent, and they have flexibility and access to global talent. 

Although the recruitment expenses, salaries, and benefits demanded are well-calculated, the actual cost of hiring a new remote worker is frequently underestimated, particularly for IT equipment and infrastructure.

IT onboarding goes well beyond the issuance of a laptop. It covers hardware purchases, software licenses, shipping, configuration time, security measures, productivity wastes, and ongoing support. 

Onboarding can also speed up productivity in a strategic way and reduce IT problems. However, being in a hurry or underfunded can create hidden costs that impact operational efficiency and security.

Core IT Costs in Remote Employee Onboarding 

The most apparent expenses are required to get a remote employee on the first day. These employee onboarding costs are not constant across positions and organizations but cannot be avoided.

Hardware and Accessories

A standard remote system consists of a laptop, monitor, keyboard, mouse, headset, webcam, and adapters issued by a company. There are also areas where power blackouts or surge protectors need to be installed to facilitate continuous operations.

Software development, engineering, or design are technical positions that may need more powerful machines. These devices add initial cost, but underpowered hardware will result in poor performance, frustration, and repeated calls to IT support. Early investment in appropriate equipment decreases long-term costs through enhanced efficiency and decreased support costs.

Licenses and Digital Rights

Remote workers also need direct access to licensed software, including operating systems, productivity packages, collaboration tools, and security software, as well as functional applications. The licenses are normally recurrent and proportional to headcount.

The magnitude of licensing cost is often underestimated in many organizations when it comes to accumulating the associated costs in a very short period, despite being a major part of the onboarding budget. 

Equipment Distribution and Logistics

Remote onboarding creates a logistical challenge that is absent from the office's conventional hiring process.

Shipping and Delivery Costs

For geographically distributed employees, companies need to cover domestic or international shipping costs, customs duties, insurance, and tracking. Courier problems or regulatory constraints may delay employees' arrival at work on time.

Every day that is delayed is a day wasted. Minor delays can interfere with onboarding plans, training programs, and group processes.

Replacement and Recovery Expenses

Missing or damaged equipment raises the expenses in terms of replacement and reshipment. Furthermore, collecting devices used by leaving staff, refurbishing them, and reusing them takes operational overhead. These lifecycle costs are normally ignored in budgeting, yet have a huge influence on IT expenditure in the long run.

IT Implementation and Configuration Effort

After equipment delivery, IT teams need systems ready to operate before staff can do their business. Usually, this involves device imaging, device operating system installation, software installation, system security configuration, access provisioning, and connectivity testing.

This effort is not just in terms of IT staff hours. It also encompasses opportunity cost, whereby talented employees are redirected towards strategic programs. With remote hiring, ineffective onboarding systems may create a long-term burden on IT divisions.

Hidden Costs that Affect Productivity and Risk

There are other types of costs that are directly affecting business, which are onboarding expenses, but they are not obvious.

Loss of Productivity in the early days

Each day, the employee has to wait until the equipment, credentials, or access to the system are made available, making them less useful. Even partial access slows the learning process and postpones workflow engagement.

A smooth beginning is an important factor in motivation and retention. Ready tools and systems will facilitate faster employee integration and help employees feel supported. This is especially critical on the first day for new employees, where first impressions can last.

Increased IT Support Demand

Hurried or haphazard installations usually cause repetitive helpdesk calls. Lack of software, wrong permissions, and deviant devices are the causes of the frequent interruptions in the onboarding and training.

Individual support interactions with IT resources do not allow new hires to do productive work, prolonging ramp-up time and raising operational costs.

Security and Compliance Risk

Remote employees do not work in a conventional office network; a secure configuration is necessary. The omission of security measures may lead to uncontrolled devices, lacks access controls, old software, and non-conformance.

This may have a high monetary and reputational cost, which could be significantly greater than the expense of effective onboarding controls. Upfront investment in secure settings is a great way of minimizing the risk exposure in the long term.

Remote vs. In-Office Onboarding Costs

Remote onboarding might seem more costly at first with the prices of shipping and customized arrangements; however, a wider comparison may show trade-offs instead of disadvantages.

Onboarding in the office usually involves desks, chairs, an office, utilities, communal infrastructure, and in-premises IT. These are continuous costs and are proportional to headcount.

Remote onboarding redistributes expenses to device distribution, equipment management, and remote support solutions. Most organizations subsidize these costs by eliminating real estate and facility costs as they mature.

How to manage IT Onboarding Costs

The cost control should focus on efficiency as the central aspect instead of shortcuts.

Hardware and software standardization make the configuration less complex, facilitate bulk buying, and make maintenance easier. The certified refurbished devices are applicable in jobs that have moderate performance requirements, yet are cost-effective and do not compromise performance.

Through Buyback and reuse programs, the lifecycles of devices are prolonged, and replacement costs are mitigated. Close coordination of HR and IT functions will make sure that equipment and access are available when needed without suffering a lot of delays, and make the onboarding process more enjoyable.

ROI of Doing it Right

When trying to reduce costs through delaying purchase or omitting setup processes, it tends to increase expenditure in the long run. Effective IT onboarding has produced quantifiable ROI by accelerating ramp-up, decreasing the number of support tickets, increasing security risk, and employee satisfaction.

When employees start with all the equipment, they add value by fully contributing to the organization sooner, making the investment worth it.

Optimizing IT Onboarding for Different Roles

Onboarding remote employees involves more than just providing a laptop and setting up an email account. To ensure a smooth transition, IT onboarding must be optimized based on the specific needs of each role within the company. Tailoring the onboarding process to these unique requirements not only saves costs but also boosts productivity and reduces the risk of IT-related issues.

1. Technical Roles: Engineers, Developers, and Designers

Hardware Needs: 

These roles often require higher-performance devices such as powerful laptops or desktops, additional monitors, and specialized peripherals like graphic tablets for designers. A well-powered setup ensures these employees can perform without technical hindrances.

Software & Tools: 

Developers and engineers need access to specific development environments, version control systems, and testing tools. Designers, on the other hand, need access to software like Adobe Creative Cloud or AutoCAD. These role-specific tools should be set up during onboarding to ensure a seamless start.

Security: 

Strong security configurations are critical for these roles, especially for those working with sensitive code or data. Implementing robust encryption, multi-factor authentication, and secure coding environments is essential.

2. Non-Technical Roles: Marketing, Sales, and Customer Support

Hardware Setup: 

Non-technical employees generally require standard laptops, monitors, and ergonomic accessories like keyboards and mice. Their hardware needs are less demanding but still essential for maintaining productivity.

Software Tools: 

These employees rely on productivity suites like Microsoft Office or Google Workspace, CRM systems, and project management tools like Asana or Trello. Ensuring they have easy access to these platforms is key to a smooth onboarding experience.

Security: 

While security remains important, non-technical roles typically need less complex configurations. Basic access controls, secure passwords, and training on phishing and security best practices will be sufficient.

3. Leadership and Executive Roles

High-Performance Setup: 

Executives require premium hardware setups with powerful laptops or desktops, dual monitors, and large screens for multitasking. This setup ensures they can manage complex schedules and make data-driven decisions effectively.

Custom Software Access: 

Leadership roles often require specialized software for strategic planning, reporting, and project management. Tools like CRM systems, financial planning software, and analytics platforms should be prioritized.

Security and Compliance: 

Executives require enhanced security protocols, including encrypted communications, secure file sharing, and VPN access to safeguard sensitive business information.

4. Creative Roles: Writers, Photographers, and Video Editors

  • Hardware & Customization: Creative roles often demand high-performance devices with substantial storage, powerful processors, and specialized tools like external hard drives for video editors or cameras for photographers.
  • Software & Storage: Access to creative software like Adobe Creative Suite and Final Cut Pro is essential, as well as cloud storage solutions to manage large files and ensure easy collaboration.

5. Customer-Facing Roles: Customer Success and Support Teams

  • Reliable Hardware: Customer-facing employees need dependable devices and communication tools such as video conferencing software, email platforms, and live chat systems to interact with clients.
  • CRM & Knowledge Tools: Onboarding should ensure access to CRM systems, customer communication platforms, and knowledge bases to help employees resolve customer issues efficiently.

Conclusion

The real expense of the onboarding of the new remote worker is much higher than the hardware cost. It encompasses logistics, information technology workforce, productivity effects, security posture, and efficiency over the long term. Those companies that do not regard IT onboarding as an afterthought, but as a strategic investment, create more resilient and stronger remote workgroups.

 

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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.