The true cost of hiring

The hiring process can cost about 30 per cent of position’s salary
By Tammy Williams
|CHRR, Guide to Recruitment & Staffing|Last Updated: 10/10/2002

The cost of hiring a new staff member can be significant. But it can often get buried and overlooked in day-to-day operations, as organizations focus on more tangible costs.

Companies generally do a great job in finding cost effective office and warehouse space, equipment and supplies. These are easy costs to measure, and therefore get far more scrutiny.

But most hiring managers and business owners can’t give a definitive answer as to how much hiring a new staff member costs simply because a dollar value has never been attached to the process in their organization. A quick look shows just how many resources are required to fill a vacant position, and how quickly the costs can add up.