Employee Management

The cost of staffing your business

Get to know what goes into recruiting and training new hires — and why it’s worth the investment.

Published: May 06, 2019
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The cost of staffing your business

Get to know what goes into recruiting and training new hires — and why it’s worth the investment.

Cost of finding potential candidates: 13 average hours spent per week sourcing candidates¹ 55 Average number of applications submitted per job opening² 23.8 days Average length of interview process³ ~$300 estimated monthly cost for a single job posting⁴ At companies with fewer than 250 employees

Cost of training new hires: Lost productivity: It can take a new employee up to a year to reach an existing employee’s level of productivity + Onboarding time: Time managers and employees must take away from their responsibilities to train new talent + Cultural impact: Lost morale and addedstress on other employees = The grand total: Typical cost of turnover comes out to about 150% of an employee’s annual salary or more⁵

Value of long-term employees:

  • Proven loyalty to their company, position, and work
  • Established relationships with customers, suppliers, and/or other employees
  • Historical knowledge of the company and the market’s evolution

Think of your employees — and the money you spend on them outside of payroll — as an investment. Spending resources to train employees and ensure you’re creating a nurturing environment may seem like an extra expense, but the benefits you may gain in worker productivity and reduced turnover might make it worth it.


¹"2018 Recruiting Trends Report,” Entelo, 2018. ²“2017 Recruiting Funnel Benchmark Report,” Jobvite, 2017. ³“What’s Ahead for Jobs? Five Disruptions to Watch in 2018,” Glassdoor, December 2017. ⁴“The True Cost of Hiring an Employee in 2018,” Hundred5, 2018. ⁵“Many Millennials Are Job-Hoppers -- But Not All,” Gallup, 2016.

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