According to benchmarking data from the Society for Human Resource Management (SHRM), many employers estimate the total cost of hiring a new employee to be three to four times the position’s salary. That means that if you are hiring for a job that pays $60,000, you may spend $180,000 or more to fill that role.
This is when you account for recruiting costs (paying for premium memberships on Indeed or LinkedIn or hiring an actual recruiter); resources and valuable time lost to onboarding and training the new employee; impact on overall productivity; the emotional toll of vetting and interviewing numerous candidates; the cost of competition; and more.
