What is the average cost of hiring a new employee
The average cost of hiring a new employee can vary widely depending on factors such as the industry, job type, location, and company size. However, here are some general estimates:
Recruitment and Hiring Costs:
- Job posting and advertising: $500 to $2,000
- Recruitment agency fees: $1,000 to $5,000
- Online job boards and social media advertising: $500 to $2,000
- Employee referrals and internal recruitment: $0 to $500
- Total recruitment and hiring costs: $1,000 to $9,500
Onboarding and Training Costs:
- Orientation and training programs: $500 to $2,000
- Equipment and software setup: $100 to $1,000
- Travel and relocation expenses (if applicable): $500 to $5,000
- Total onboarding and training costs: $1,100 to $8,000
Other Costs:
- Background checks and drug testing: $50 to $500
- Benefits and insurance costs (if applicable): $500 to $5,000
- Taxes and payroll processing: $100 to $1,000
- Total other costs: $650 to $6,500
Total Average Cost of Hiring a New Employee:
- According to Glassdoor, the average cost of hiring a new employee is around $4,000 to $6,000.
- According to the Society for Human Resource Management (SHRM), the average cost of hiring a new employee is around $3,500 to $5,500.
- According to the American Staffing Association, the average cost of hiring a new employee is around $2,500 to $4,500.
It's worth noting that these estimates can vary widely depending on the specific circumstances of the hire. For example, hiring a highly specialized or senior-level employee may require a much larger investment in recruitment and onboarding costs.