Here's a fun exercise: Add up how much you think you spend on software licenses when onboarding a new employee. Now double it. You're probably still underestimating.
Last quarter, I onboarded 12 new team members and tracked every single software-related cost. The results were eye-opening, to say the least. Let me break down what I discovered about the true cost of getting a new hire up and running in today's digital workplace.
First, let's talk about the basics. For our average knowledge worker, here's what we're typically looking at:
Seems straightforward, right? But wait, there's more. So much more.
Remember when you negotiated that great deal for 50 licenses? Well, you're at 48 users now, and hiring one more person means jumping to the next pricing tier. Suddenly, that new hire effectively costs you the difference for ALL licenses, not just their own.
"Oh, they might need access to this eventually..." Sound familiar? I found we were pre-emptively adding new hires to software they wouldn't use for months, if ever. It's like buying a winter coat in summer – just because they'll eventually need it doesn't mean you should buy it now.
Here's one that shocked me: temporary licenses for training software. We were paying for full months of certain tools just to use them for a two-week onboarding period. That's like renting an apartment for a month when you only need it for a weekend.
Let's break down the real numbers for a typical marketing team member:
Basic Tools (Monthly):
Marketing-Specific Tools:
Total Monthly: $308
But here's where it gets interesting. Factor in:
Real Monthly Cost: Close to $400-450 per employee
After this reality check, here's what we implemented:
Instead of giving new hires every possible tool on day one, we created a phased rollout:
This alone cut our initial software costs by 30%.
We now do monthly "software censuses" to check:
We created specific software packages for each role. No more guessing or over-provisioning – just clean, efficient license management.
After implementing these changes:
As we move toward an increasingly digital workplace, these costs will only grow. The companies that get ahead of this now will have a significant advantage in scaling efficiently.
Remember: Every dollar saved on unnecessary software licenses is a dollar you can invest in your people, product, or growth. Start tracking these costs now – your CFO will thank you later.
What's your experience with managing software costs for new hires? Have you found creative ways to optimize these expenses?
TierCrush for
your next project
TierCrush is your all-in-one subscription superhero. Effortlessly manage licenses, slash costs, and boost productivity. It's like having a personal subscription whisperer for your business!