What is onboarding automation? Challenges, solutions, and benefits.

What is onboarding automation? Challenges, solutions, and benefits.

Not very long ago, onboarding used to be a manual process. It required many human interactions. But it has now become simpler with digital technologies and tools. 

Onboarding started as a smaller segment in the vast expanse of technological implementations. It was a small backend application to collect the company employee information. Earlier implementation of automation revolved only around onboarding new employees. 

Soon, businesses realized the amount of time and effort they spend on onboarding tasks. To simplify the process, they started adopting automation tools.

Today, the employee onboarding process has evolved into automated onboarding across all industries. 

The growth of the onboarding software industry is just the repercussion of the values it brings on the plate.

In this article, we will discuss the prevailing onboarding challenges. We will also look at how simple automation tools like self-serve portals can speed up your operations.

Types of onboarding

The onboarding workflow in any industry involves some/all the following stakeholders:

  • Customer onboarding
  • Employee onboarding
  • Merchant onboarding
  • Vendor onboarding
  • Partner onboarding

For transparency and ease of operations, companies want to know everything about their stakeholders. Availability and access to data from thousands of interconnected sources can give a competitive edge to a company. While the data is here, so are the obstacles.  The need to learn, adapt, and grow with the massive amount of consumer and business data requires a strategic approach. Onboarding automation, data, and technology form a perpetual cycle.

Merchant lifecycle management - connected teams

Common onboarding challenges

What most companies fail to realize is that onboarding is not a one-time exercise. The process is continuous, time taking, and stressful. Acquiring new customers is 5 to 25 times more expensive than retaining existing ones. (Source: Invesp)

It involves assessing and reassessing the ever-evolving client’s situation and needs. Only after a thorough review, you can offer the best possible solution to your clients.

A continuous onboarding process manages any changes in the circumstances of the customer. KYC, legal checks, product & service configurations, etc. maintain updates throughout the customer lifecycle.

The prevailing pandemic has added further complexities to the onboarding paradigm. Lockdowns have stalled onboarding and have created bottlenecks in the business processes.

To resolve these challenges, organizations can invest in digital onboarding solutions. Video KYC to onboard customers and partners from a remote location is one of them. 

How does automation resolve the onboarding challenges?

Automation is about digitizing manual and repetitive processes. Some of these processes include monotonous tasks such as:

  • Documentation 
  • Workflow automation
  • Data collection
  • Content delivery 
  • Data entry
  • Reminders and alerts, etc.

Contrary to popular belief, automation is not a one-time project. It is an unending development process.

Automating a small part of your business is not enough. When companies look at the bigger picture, they realize that it is not a single piece of software. But automation is a practice of streamlining and stabilizing the whole business process.

The initial deployment is an arduous learning experience. When the first piece fits right, you will start leveraging the next automation opportunity. It will help you grow and improve your system as you learn what works.

An onboarding solution can transform the whole experience into a rewarding initiative. The following are its key features:

  • Sharing knowledge 
  • Communicating values
  • Building connections
  • Managing compliance 
  • keeping your stakeholders/customers updated with the business
Vendor Onboarding software - feature

Four important phases of onboarding

In any organization, onboarding involves the following four crucial phases:

  1. Pre-arrival: This phase is about making joining formalities simple. For example, you can use a paperless application process, fetch data from HR portals (in case of employee onboarding), make the verification process simple.
  2. Joining: Equip the new team member with the tools and technology you use. 
  3. Orientation: Schedule a session to introduce the new member to relevant teams, support team, and more.
  4. Training: If your system or app requires user training, make sure you have video tutorials and live sessions scheduled. 

Benefits of onboarding automation

Today, manual processes are a barrier to good customer experiences. It includes the client onboarding phase. Companies that engage more with clients motivates them to buy 90% more frequently. They also spend 60% more per transaction and have almost three times the annual value when compared to other customers. (Source: GrooveHQ)

The following are the proven benefits of onboarding automation:

  1. Reduce onboarding time: Seamless onboarding process through any channel. It includes mobile, PC, or ATM, with ID scans, e-signatures, and Video KYC solutions.
  2. Decrease TCO (Total Cost of Ownership): Digitize and automate the complete ID check flow to save money and time.
  3. Products & Services Package: Accumulate partner services and expand the range of purchase options for your customers.
  4. Omnichannel accessibility: Personalize the onboarding workflow by leveraging different channels.
  5. Reduce cost of change: It can also display an adjusted price/policy change to the consumer at a minimum expense.

To sum up

Automation solutions can give a competitive edge to your organization. It will not only speed up the operations but also deliver better customer experiences. Successful companies are miles ahead against their competitors with the implementation of automation.

The time is ripe to invest in employee/vendor/customer onboarding tools to avoid the repercussions of late adoption.

Try LeadSquared Onboarding Automation Software for Free!

Also read:

Onboarding FAQs

What is meant by onboarding in recruitment?

Onboarding in recruitment refers to the process of bringing a new member/employee at work. Recruitment involves finding a candidate, interviews, etc. On the other hand, onboarding comes into play after securing the candidate.

How long is the onboarding process?

It depends on the industry and individual business processes. For example, employee onboarding may take days, whereas digital vendor onboarding happens instantly. Details.

Is onboarding the same as orientation?

Orientation is a part of the onboarding process. It involves making the new team member familiar with the organization, teams, processes, and systems. On the other hand, onboarding involves document collection and verification, orientation, and training.

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