In the November 2020 Snapshot Survey, contractors share their experience with employee retention to help you learn how to incorporate best practices into your business. Here's one survey question and its results from the summary report, which will be available in its entirety to EGIA members on 12/18/20.
What is the estimated cost of hiring a new employee?
One of the biggest expenses for any business owner is finding and hiring competent employees. We asked contractors what the estimated cost of hiring a new employee is and the majority (30%) replied between $1,000 and $1,500. Just behind that, 28% of contractors said that hiring just one individual can cost them more that $2,000. With hiring costs into the thousands for many positions, owners must have a strategic plan for retaining skilled employees to protect their costly investment.
A recent study by HR Drive offers additional context:
"Hiring a new employee can cost employers 33 percent of an employee’s annual salary. With recruiting, interviewing, hiring, and training expenses, in addition to lost productivity, replacing a person making $45,000 per year can cost a company upwards of $15,000."