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Free tools for HR leaders

Cost of Onboarding Calculator

See what each new hire really costs to onboard, and what better onboarding is worth.

Your numbers

Training delivery, admin, equipment, software
Cost per new hire
 
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Where Compono fits

Process onboarding gets people set up. It rarely tells you whether they are actually becoming capable in the role, which is where most of the hidden cost sits. Compono Develop builds structured learning into the first weeks so new hires reach competence sooner, with the link to capability made visible. Compono is rated 4.8 out of 5 on Capterra and grew 20% year on year against a 9.8% industry average.

See how it works

How it's calculated

Cost per hire is the sum of training delivery, manager and buddy time (hours multiplied by their hourly rate), admin, equipment and software, and the value of reduced productivity during ramp-up. The ROI variant compares the value of faster ramp-up plus retention gains against your onboarding cost. For context, published Australian guidance puts structured onboarding programs at roughly A$2,500 to A$5,000 per employee, before the ramp-up productivity cost this calculator makes explicit.

Common questions

What should I include in onboarding cost?

Direct costs (training, equipment, software, admin) plus the people cost (manager and buddy hours at their rate) plus the productivity cost while the new hire ramps up. That last one is the largest and most often left out.

How much does onboarding typically cost?

Published Australian guidance puts structured onboarding programs at about A$2,500 to A$5,000 per employee. The larger and usually uncounted cost is reduced productivity during ramp-up, which is why this calculator asks for it separately.

How do I calculate the productivity cost of ramp-up?

Estimate the share of full productivity a new hire reaches each week, then value the shortfall against their salary for the ramp period. A separate time to productivity calculation makes this cleaner.

What's the fastest way to lower onboarding cost?

Shorten the time to competence rather than cutting onboarding activity. Faster, well-structured ramp-up reduces the productivity cost and improves early retention, which is where the biggest savings come from.

Figures are estimates using published benchmarks. Sources shown above; rates reviewed annually.