What is Digital Onboarding?
Digital onboarding is the process of integrating a new customer or employee into an organization using digital technology. It involves the use of multiple digital software to collect, process and verify personal as well as professional information of the new user to make the onboarding process smooth.
Digital onboarding has become increasingly important in today’s digital world, especially in the wake of the COVID-19 pandemic, which has forced many businesses to shift to remote working. With digital onboarding, organizations can onboard new employees and customers without the need for physical contact which also reduced the need for in-person visits. This process is not only safe but also accurate, efficient, cost-effective, and time-saving for both the organization and the user.
Key components of digital onboarding
Digital onboarding comprises various key components, which include:
- Digital identity verification: This process involves verifying the identity of the new user using digital technologies such as biometric authentication, facial recognition, and digital signatures. It ensures that the user’s claimed identity is authentic and prevents unauthorized access or identity theft.
- Data collection and processing: This involves the collection and processing of personal and professional information of the new user, such as their name, address, email, phone number, employment history, education, and qualifications. The collected information is used to create a profile for the user and to complete the necessary documentation.
- Electronic signatures: This allows the user to sign documents electronically, eliminating the need for physical signatures. It is a secure and convenient way to sign legal documents, contracts, and other agreements.
- Orientation and training: This component of digital onboarding involves providing the new user with orientation and training on the organization’s policies, procedures, and culture. It helps the user understand their role in the organization and sets them up for success.
Benefits of digital onboarding
Digital onboarding offers numerous benefits, including:
- Time-saving: It reduces the time required to complete the onboarding process, allowing the user to start working or using the organization’s services quickly.
- Cost-effective: It eliminates the need for physical paperwork and reduces printing, mailing, and storage costs. It also minimizes the need for physical contact and saves transportation and accommodation costs.
- Convenient: Digital onboarding can be done virtually, allowing the user to complete the process from anywhere with an internet connection.
- Efficient: It streamlines the onboarding process and reduces errors and delays caused by manual data entry and verification.
- Compliance: It also ensures that all necessary legal and regulatory requirements are met, reducing the risk of non-compliance penalties.
Best practices for digital onboarding
To ensure a successful digital onboarding process, organizations should follow these best practices:
- Plan ahead: Businesses should plan ahead and create a detailed onboarding plan that outlines the entire process, including timelines, responsibilities and deliverables.
- Provide clear instructions: Organizations should provide clear instructions to the new user on completing the onboarding process, including which documents to submit and how to sign them.
- Use secure technology: Businesses should use secure and reliable technology to collect, process, and store user data, ensuring that it is protected from unauthorized access or theft.
- Personalize the experience: Business entities following digital onboarding should personalize the onboarding experience for each user, providing them with relevant information and resources that meet their unique needs and interests.
- Follow-up and feedback: Organizations should follow up with the new user after the onboarding process is completed to ensure that they are satisfied with the experience and to gather feedback on improving the process.