How Much Does an Employee Really Cost You?
Most people old enough to run a company are familiar with the phrase “Freedom isn’t free.” Well, neither is doing business. It takes money to make money, and a perpetual overhead is just part of the game. When it comes to staffing, though, the costs can feel more like a dark cloud looming overhead.
You don’t need an advanced degree in economics or manage an employee recruiting agency to know that employees cost you plenty. After all, once every week or two you watch the bank account dwindle as you dutifully pay them for their time and service. Your employees are costing you far more than just their base wage, however.
On average, U.S. businesses pay almost $31 an hour for an employee. Only about 70% of that is their actual salary or hourly wage, with the remaining 30% divvied up between various taxes and benefits. Whether you plan on recruiting from within your organization or using an outside employee recruiting agency, the costs are unavoidable:
- If you want to steer clear of the I.R.S., you will be paying Social Security tax, Medicare tax, and providing Unemployment Insurance for every employee.
- Although they vary by region, you will pay state taxes, local taxes and Worker’s Compensation fees for every employee.
- Opt-in or mandated healthcare coverage adds to the cost of every employee.
- The cost of training, providing office space, use of office supplies and equipment, liability insurance coverage, professional memberships, travel, etc. are all increased with every employee.
In short, most businesses will pay anywhere from two to three times the employee’s wage for each person employed once everything is factored in. Unfortunately these numbers don’t change just by turning to an employee recruiting agency. The best approach is to be mindful of the fact that employees are costly, a bad hire adds even more to these high costs, and seeking out the best recruiting solutions should be a top priority for every company. This is why businesses come to Painless Hire.
In ever-increasing numbers, businesses that are fed up with the costly mismatches delivered by typical agencies and recruiters are finding that Painless Hire is the best alternative. Painless Hire offers true recruiting solutions by providing only pre-screened, pre-tested applicants that meet your exact requirements, quick results, no-nonsense pricing and a satisfaction guarantee that is second-to-none.