The True Cost of a New Hire
I spend a lot of time talking to people about the real cost of a new hire. Often times I start by pointing out the obvious âhard costsâ: advertising costs, background checking, interviewing. But beyond these quantifiable costs there are many other âsoftâ costs that are regularly overlooked.
Recently, a company was looking to hire a senior client services associate with a salary of $40,000. Here is a breakdown of how that companyâs time was spent:
â¢Developing a job description: three hours
â¢Placing calls to people within the staff membersâ professional networks in search of a suitable candidate: five hours
â¢Posting the position internally and on the company Web site: 20 minutes
â¢Responding to the 50 résumés received and conducting 10 phone interviews: five hours
â¢Sorting résumés into various skill categories: three hours
â¢Inputting résumés into the companyâs database: two hours
âAlthough the company was strategic in its search, they spent nearly 20 hours and did not find a suitable candidate.
According another source, an article by Will Helmlinger of the The Resource Development Group, âthe cost to replace one Customer Service Representative earning $18,000 annually is nearly $58,000″.
http://masemp.com/blog/2009/09/the-true-cost-of-a-new-hire/