Average Cost of Hiring a New Employee
in a study by the National Association of Colleges and Employers, hiring an employee in a company with 0-500 people costs an average of $7,645. Another study by the Society for Human Resource Management (SHRM) states that the average cost to hire an employee is $4,129. And it takes around 42 days to fill a position.
And in more research, according to RecruiterBox, the average cost-per-hire in the manufacturing industry is $5,159.
Although hiring costs vary by industry and region, nonetheless it is always surprising to see the bottom-line figure. Particularly after all of the line item costs have been factored in. The total cost of hiring a new employee could be as high as $5,000, or more. That’s in a professional or manufacturing industry.
On the other hand, even hiring a new employee in a service industry typically costs more than $1,000.
Hiring Process Elements
In other words, there are many surprising individual costs incurred during the hiring process. They include:
- advertising costs
- in-house recruiters’ salaries
- third-party recruiter fees
- travel expenses
- sign-on bonuses, and…
- employee referral bonuses.
For certain high-level jobs, there may be employee relocation costs, as well.
Note that costs associated with hiring a productive employee are far less than costs and overall impact of a bad hire. If a new employee isn’t a fit and terminates quickly, the company may experience a number of additional costs. These may include cost to recruit and train a replacement, and unproductive time that was lost.
Hiring Cost Infographic
The infographic shows a detailed breakout of the costs of hiring new employees. Note the cost of hiring the wrong employee and ways to avoid that mistake.
How Flexicrew Can Help
To sum up, many employers currently face resourcing challenges. Why not discuss yours and optimize your workforce for cost and productivity in today’s work environment. Contact one of our Flexicrew talent acquisition professionals Today!