Return on investment (ROI) is the first factor we consider when investing in anything. ROI is equally important when making a new hire. You’re investing resources into someone hoping to gain a worthwhile return, which can be pretty costly and pose as risky if done wrong.
Here’s a look into the investment of a new hire:
According to Investopedia, the cost of hiring goes further than salary; you must also consider the cost of recruitment, training, benefits, and all the time it takes. Take a look at the numbers provided by Investopedia:
- $92 billion – Amount companies spent in 2020-2021 on training.
- 25% – Productivity level of a new employee’s first month.
- 6 Months – Amount of time it could take to break even on the investment.
- $1,000+ – Average training cost per employee of a business with 100-999 employees.
On top of training and onboarding costs, the initial job posting can also consume resources. It takes time to construct a well-thought-out and eye-catching job description. It also takes more time and budget to advertise the opening to be seen by the ideal candidates across multiple job boards among thousands of other companies hiring.
Another potential investment to prepare for is the cost of a bad hire. If you don’t put enough resources into the process or either of you realizes it’s not a good fit, you will need to go through the process (and all costs) all over again. What we know to be beneficial in reducing the time, turnover, and cost of searching for talent is working with a staffing agency, especially one with a niche in the type of talent you seek. Staffing agencies can help you find, screen, and qualify talent to make the most efficient hire.
Once everyone is acclimated and any probationary period is over, bringing aboard new team members promotes growth, distributes the workload, increases productivity, boosts morale, diversifies the skills on your team, and so much more. Hopefully, your new hire loves what they do and thrives in their new environment. The benefits of a new hire go beyond numbers, too. A new employee can bring energizing leadership and great potential to your business in ways you may not have imagined! You can’t have a successful return without investing in great employees.
Make the most out of the hiring process. Contact us today!
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