Although hiring costs vary by industry and region, it is always surprising to see the bottom-line figure, after all of the line item costs have been factored in. The total cost of hiring one new employee could be as high as $5,000, or more, in a professional or manufacturing industry. Even hiring a new employee in a services-related industry typically costs more than $1,000.
There are many individual costs incurred during the hiring process, including advertising costs, in-house recruiters’ salaries, third-party recruiter fees, travel expenses, sign-on bonuses, and employee referral bonuses. For certain high-level jobs, there may be employee relocation costs, as well.
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It is important to note that the hiring costs associated with hiring a productive employee are far less than the cost and overall impact of making a bad hire. If a new employee is not a good fit and terminates after a short period of time, then the company may experience a number of additional costs, including the cost to recruit and train a replacement, as well as the unproductive time that was lost. Please see the infographic below for a detailed breakout of the costs of hiring new employees.
