The dollar amount spent on a new hire will range widely due to a number of factors. A benchmark of $4,000 may be a good goal during a time of high unemployment, but it may be unrealistic when no one is looking for work.
Compliance
Compliance is another factor to consider when you’re wondering, “How much does it cost an employer to hire someone?” Mistakes can be costly, and we don’t often like to look at things like lawsuits or bad hiring practices as having a dollar cost. With employers losing $404 million in Employment Opportunity Commission settlements every year, HR teams cannot afford to ignore this.
Turnover Rate
A high turnover rate is also worth thinking about. If you focus too much on the cost to hire, it’s possible that hasty decisions will be made in the interest of saving time and money. A bad hire is expensive. It can cost up to six months of a position’s yearly salary to replace that employee and get them fully trained, which is often overlooked in calculating cost per hire.
Opportunity Costs
You don’t want to ignore opportunity costs as well. By trying to save money, it’s tempting to hire the first good candidate that comes your way. By not holding out for the best, however, you risk missing out on top performers. The same happens when your hiring process is too slow or disorganized. Turning off star employees with a messy hiring path isn’t something you can afford.
NetworkESC Can Help You
By trying to save money, it’s tempting to hire the first good candidate that comes your way. By not holding out for the best, however, you risk missing out on top performers. The same happens when your hiring process is too slow or disorganized. Turning off star employees with a messy hiring path isn’t something you can afford. Our professionals at NetworkESC are skilled in hiring the right candidates so reach out to us today!