The High Cost of New HiresManagement, News December 28, 2012
The first part of a year will often see new businesses, and older ones expand. The December through February also see more resignations, hires, and and HR reshuffling than at any other period.
Hiring new employees isn’t such a simple matter – and it certainly isn’t cheap. New hires brought in to replace old employees usually need to be brought up to speed, resulting in productivity cost. Paperwork, advertising, and time, are just a few of the other costs you’ll need to include when hiring new people.
Check out this infographic from complianceandsafety.com for a clearer picture on the high cost of new hires:
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We find the most interesting part of the infographic to be the Bureau of Labor Statistics figure of $57,968 as the average cost of hiring a new employee- not counting training costs. Of course, we’d guess for the majority of new small businesses, the costs would be lower than that stated average.
These costs shouldn’t scare anyone with limited resources from starting a new business or from replacing a non-performing employee. If anything, this should help inform attitudes on what it really means to have a good team and what you can do to prevent unnecessary employee turnover.
Take hiring seriously Don’t just get anyone because they’re qualified to do the minimum the job requires. When you have the right people on board, the costs of hiring become irrelevant.