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Don't forget the cost to recruit and onboard talent typically blows away providing even a modest 10% COL raise during periods of high inflation.
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I recently onboarded onto a commercial contractor for a brief period of time before jobhopping to a different job, and...
Physical Exam $200
Drug Test $50
PPE (Hard Hat): $12-15
PPE (Safety Glasses): $12-15
PPE (Safety Vest): $12-15
Total raw cost of a basic new hire: $286.
Then you need to factor in about an hour's time for the admin secretary etc to verify status and get everything (health / insurance / next of kin etc) typed in for that person, double checked.
Figure about $20/hr for the secretary, so total cost to the company for the secretary is about maybe $65/hr when you factor in health benefits, etc.
Final Cost of New Hire: About $350
That doesn't really seem like a lot; but if you have a constant revolving door of new hires failing out within the first two weeks on the job -- it does add up -- A hundred failed applicants a year costs the company about $35K just for those basic costs; then there's the cost of OT for the people who have to make up for the missing staff, and lowered company productivity since you can't make as many widgets.