How HRMS Software Boosts Employee
Onboarding and Offboarding
Employee onboarding and offboarding shape the two most memorable moments in a person's
career with your company. But the majority of businesses invest in recruitment and very little on
what happens after employees sign the offer letter or resign. As a result, the employer brand
that companies have worked so hard to create over years is subtly undermined by an
uncoordinated first week or chaotic exit.
Employee onboarding and offboarding are equally important since they both impact retention,
compliance and reputation! Additionally, in a workforce that is eager to post their reviews freely
on the internet, one bad exit review can outweigh dozens of good ones.
In this article, we will discuss how HRMS software can revolutionize both processes, make
Nepali labor compliance more relevant and why, and how Hajir HRM can put structure around a
journey that is too important to leave manual.
Why Employee Onboarding and Offboarding Matter More
Than Most Businesses Realize
Employee onboarding and offboarding are two ends of the same story, but they're considered
two distinct issues. Thus, companies invest a lot in onboarding checklists and do not bother with
offboarding through informal exit interviews and rushed paperwork.
Studies have proven that a structured onboarding process can help new employees remain on
the team for a longer time, especially in the first year. Likewise, a well-structured offboarding
process that is respectful leads to higher chances of rehiring the previous employee or referrals.
Consequently, both of these processes directly impact the long-term hire cost and employer
reputation.
Compliance also lies with employee onboarding and offboarding. In particular, there can be legal
disagreements between two parties because of the lack of one or more documents when the
employee joins, or inaccurate final settlements when the employee leaves a company. It makes
sense, therefore, to make these processes a part of the core of your business, and not just a
catch-up activity.
What Makes Onboarding Difficult Without HRMS Software
In times of new hires, it seems they spend their first couple of days on paperwork rather than on
their real job. Further, when a document exists as email, physical file, and verbal approval, HR
departments can't keep track of the documents that were submitted.
When there's no central system, the IT department often is told after laptops and email accounts
have been set up that someone has joined, leaving them with "after the fact" work.
As a result, on day one, employees start their job without getting any work done and they make
a negative impression on the person with whom they spoke or interviewed, which undermines
the excitement they created with the interview process.
Common Onboarding Challenges
● Manual paper chasing for verification and payroll setup that is slow.
● Approval chains that hang up, with offer letters waiting for several approvals
● Lack of consistency in orientation, from one HR staff member to another.
● Late access to the system due to inadequate advance notice by IT
The result of each one is a barrier to the next. So an all-day journey, that is, the first week,
becomes an irritating first week.
What Makes Offboarding Difficult Without HRMS Software
One thing that is the same about employee onboarding and offboarding is that neither process
is structured: Offboarding is different though, as it involves financial settlements, legal
compliance, and asset recovery, and is done under time constraint.
Manual final settlement calculations are often prone to errors, especially when it involves
calculating of gratuity and leave encashment and calculating provident fund contribution based
on tenure and last drawn salary.
In addition, in Nepal specifically, expectations are clearly established in the Labour Act, 2074
concerning the time allowed to settle, and failing to do so introduces legal liability.
Common Offboarding Challenges
● Knowledge transfer that results in projects getting stalled when an employee moves on
to a new role or company
● Any company property that has not been returned such as laptops or identification cards
and access cards.
● Errors in manual final settlement processes that withhold payment or cause disputes
● Compliance documents not available on file when audited.Compliance documents not
present on file when audited.
For businesses that do not have a structured process, the risk of financial and reputation loss is
ever present with each departing employee.
How HRMS Software Transforms Employee Onboarding
and Offboarding
HRMS software streamlines the hiring process and enhances employee onboarding and exit
management, with the latter becoming smoother and more efficient once HRMS replaces
paper-based, memory-intensive tasks. Thus, no step relies on any specific HR staff member for
implementation.
HRMS software gives new employees access to documents, sign offer letters and access
company policies on a self-service portal before they even start their first day! In addition,
automated workflows create a path for signatures to be sent to the appropriate managers
without HR having to follow up on the signatures manually. Consequently, new hires come on
the first day knowing how to log in and what to do in these first 30, 60 and 90 days.
The offboarding process kicks off once an employee leaves the company, simultaneously
activating parallel workflows in HR, IT, payroll, and the respective department rather than
waiting one step after the other.
In particular, the system assigns knowledge transfer tasks with deadlines, automatically records
asset recovery, and automatically makes settlements according to the pre-configured rules. As
such, if gratuity, leave encashment and provident fund dues are calculated correctly, then
settlements are transferred out in the permissible time frame in Nepali labor law.
Key Benefits of Structured Employee Onboarding and
Offboarding
Once businesses invest in structure and not improvisation, the returns are measurable from
employee onboarding and offboarding processes.
Speed to productivity: New employees quickly become productive by learning their job during
their first week instead of running around after paperwork.
Lower compliance risk: Automated calculations mean final settlements can be accurate in
accordance with labor law, eliminating the risk of disputes or penalties.
Better employer brand: Positive word of mouth at both ends leads to better hires and client
perception.
Reduced HR workload: Automation takes care of repetitive administrative tasks, allowing HR
teams to get more strategic.
Improved data security: The data is centralized in one location, ensuring that sensitive
employee information is securely managed and stored.
How Hajir HRM Supports Employee Onboarding and
Offboarding
If your employee onboarding and offboarding processes take place in two different systems,
they fail to work in tandem and won't be as effective. No part of the employee lifecycle is left
unhandled by Hajir HRM, with onboarding, offboarding, payroll, attendance and compliance all
combined on one platform.
Specifically, when an employee leaves through Hajir HRM, it automatically retrieves attendance
data, leave balance, and salary data, and calculates the leave and salary based on Nepal
Labour Act.
Without having to manually collect these data from multiple sources from HR. In the same way,
when a new recruit comes on board, Hajir HRM starts to collect documents, route them for
approvals and makes them available to them for self-service from the moment they start
working.
Thus, enterprises that adopt the Hajir HRM do not compromise on their employees' experience,
Two Critical Moments — One Reliable System
Employee onboarding and offboarding determines the experience of a person at the start and
end of their journey with a company. As a result, businesses that invest in both recruiting and
employee relations, not just recruiting, create a better company reputation and reduce
compliance risks.
The consistency required for employee onboarding and offboarding simply can't be met with
manual processes. But with structured HRMS software, that's all changed; both become
repeatable, reliable, stress-free workflows.
Simplify Employee Onboarding and Offboarding With
Hajir HRM
Just as with all business processes, employee onboarding and offboarding should be structured
and well-cared-for. From the moment you hire to the moment you let someone go, Hajir HRM
involves automated workflows that comply with Nepal's Labour Act, allowing your HR team to
focus more on strengthening your employer brand and less on paperwork.
Book a Free Demo with Hajir HRM Today!
Book a Free Demo with Hajir HRM Today and check out how structured onboarding and
compliant offboarding go hand in hand on one platform.
Frequently Asked Questions (FAQs):
What is the difference between employee onboarding and offboarding?
The difference between employee onboarding and offboarding is that onboarding is about
helping someone succeed in their new role, while offboarding is about helping someone to
succeed in their job.
Why do employee onboarding and offboarding matter for small
businesses?
Onboarding and offboarding are important for small businesses as they help with retention. The
value of employee onboarding and employee offboarding is significant no matter the size of the
company, because the same mistakes will cost the company the same amount, whether they
are making the mistakes onboarding or offboarding, on a 10-person or 1,000-person workforce.
How does HRMS software improve employee onboarding and offboarding?
HRMS software streamlines document collection, approval processes, and final settlement
calculations in onboarding and offboarding. That means business processes have both a
reduced number of manual errors and are finished much quicker.
What compliance risks exist during offboarding in Nepal?
According to Nepal's Labour Act 2074, calculation of Gratuity and Leave encashment is
compulsory, and should be done accurately by employers, and final settlements should be made
within a fixed period. Failure to meet these requirements may lead to conflicts or legal liability.
Can structured onboarding reduce employee turnover?
Yes. A well-structured and organized onboarding process helps ensure that employees feel
confident and engaged from the start, increasing their likelihood of being satisfied with the
company and remaining with them for the long term.
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