One Bad Hiring Decision Can Really Hurt Your Bottom Line
CNN’s Small Business Resource Guide posted an article on the real costs of hiring an employee and the facts are pretty substantial. They explain how a $14/hour employee really costs $19/hr for the employer. This is due to fixed expenses which include “federal and state taxes, health insurance, workman’s compensation, uniforms, and paid time off — along with soft costs like the time spent training a new hire.” Employees, the article argues, are the most expensive investment a business can make. This is important information for small companies ready to take their business to the next level.
“The cost of hiring the wrong person becomes incrementally more expensive the shorter period of time they have been with you. The first 90 days are typically the most expensive to have them on board,” said Sherrier of Employment Enterprises. “If they stay, that is cost you can recover.”
One way to combat employee turnover is by ensuring each employee is properly vetted. This can entail a lot of manpower but if done correctly can save a company a lot of time, energy and resources. While its easy to find candidates in the current job market, it’s not as easy to make sound hiring decisions.
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