5 Benefits of Electronic Onboarding for Small Businesses (And Why It Pays Off Fast)

How many outdated processes in your business do you maintain simply because “that’s how we’ve always done it”? Is your paper-based onboarding system hurting your new hire experience?

Consider this: one in four new hires report dissatisfaction with their onboarding experience. One in three have a horror story to tell about it (Enboarders 2024 State of Employee Onboarding Report)?

At Whirks, we’ve helped hundreds of small businesses break free from outdated onboarding routines. We've helped these businesses upgrade to electronic onboarding systems that create better first impressions and save time and money. Modernizing this one process can transform how you welcome new talent and set them up for success from day one.

In this article, we’ll cover five key benefits of digital onboarding that have worked for our clients, so you can decide if it's right for your business.

What Exactly Is Electronic Onboarding?

Electronic onboarding lets new hires enter their information into your HR system before their first day. Instead of spending hours manually entering data, collecting paperwork, and filling out forms, both you and your new employee get a streamlined and automated experience.

Everyone benefits—the new team member, managers, and HR staff all save time with this more accurate and automated process. Plus, all employee documents live in one secure system, helping you stay organized, compliant, and eco-friendly.

And that’s just the beginning. Let’s look at five ways electronic onboarding can benefit your business and transform your hiring process.

1. Make a Strong First Impression with Digital Onboarding

Finding the right candidates is only half the battle when it comes to hiring. Making a great first impression is crucial to reassuring your new hires that they’ve made the right decision to join your team.

Electronic onboarding is the perfect tool for creating that lasting first impression. Instead of handing your new employee a stack of paperwork on day one, send them a link to digital forms to complete before they start. Within minutes, they're fully integrated into your system and ready to hit the ground running.

Today's workforce expects tech-savvy employers who embrace digital solutions. New onboarding technology might seem intimidating, but it can help you stand out from competitors vying for the same talent.

2. Cut HR Errors With Accurate Digital Forms

As a business owner or HR manager, you worry about things like Department of Labor audits finding non-compliant paperwork.

Be proactive and reduce errors by implementing digital onboarding. Manually entering data from handwritten forms opens the door to mistakes, no matter how careful you are. Electronic onboarding helps you capture all required information correctly.

No more squinting at bad handwriting. The system gets information straight from your new hire, eliminating transcription errors entirely.

3. Save Time and Simplify with Centralized Electronic Onboarding

The word "migration" might scare you. Many business owners see years of files to digitize and think no software is worth it.

But the fact is, you only have to do it once. After that, all information from current and future employees is automatically stored in the system. No more digging through file cabinets and folders searching for employee information.

As a bonus, you can finally reclaim that office space currently occupied by dusty file cabinets. Maybe replace them with trendy low-maintenance plants like Monstera, snake plants or ZZ plants (or an air plant if you don’t have a green thumb).

4. Spend Less and Hire Smarter with Digital Onboarding

Take a moment to calculate what you spend annually on paper, ink, file cabinets, storage space, and the payroll hours dedicated to managing it all. Is it hundreds, thousands, or even tens of thousands of dollars?

Businesses with 20+ employees typically spend upwards of $2,000 on office supplies annually—that's over $20,000 in a decade.

In contrast, electronic onboarding typically costs around $1 per employee per month. That same office spending $2,000 annually on supplies could be paying just $240 a year for digital onboarding. This could dramatically cut their office supply budget while improving efficiency.

5. Protect Your Business with Secure, Compliant Onboarding

Employee files scattered around the office or stored in unsecured file cabinets put a target on your company's back. One data breach or compliance violation can result in penalties and reputational damage.

Cloud storage or encrypted software adds essential security for sensitive employee information. Electronic onboarding systems capture required employee information like I-9 data and limit access to only those who need it.

Is Electronic Onboarding Right for Your Business?

Not every business needs to digitize their onboarding process right now. If you’re a startup or small business hiring just a few people each year, your current approach might serve you well for the moment.

For growing businesses that hire often, electronic onboarding offers clear benefits.

At Whirks, we’ve experienced these advantages firsthand. Our team members can complete their onboarding in a fraction of the time it used to take with paper forms. And they’re able to take care of the majority of tasks before they start their first day. Instead of being stuck at a desk filling out forms, they can set up their workspace, start training, and have lunch with their new team. This is a much more welcoming experience than being handed a stack of papers and left alone.

Making the leap to electronic onboarding isn’t just about saving paper, though. It’s about creating a better first day, every time. You welcome new hires with confidence, your team saves hours every week, and your business operates more smoothly across the board.

Ready to stop wasting time and impress new hires from day one? Then, digital onboarding may be your next smart move. If you have questions about this or other HR issues, our People Services team can help.

Plus, learn more about building your dream team here: 4 Ingredients for Hiring the Right Candidate.