Hiring employees is expensive. And while it’s an investment that can pay off in the long run, it’s still very sobering to see exactly what you’re spending on every employee. And that’s not even mentioning how much it will cost you to make a wrong hiring decision!
With so many factors affecting the hiring process, we’ve put together a quick breakdown of how much it costs to hire a new employee. Let’s dive in.
The Cost of Recruiting
The average salary of a new junior Developer / Programmer(s) in Turkey is 7.750 TL, and it takes roughly 42 days to fill the position, with some variations based on industry and location.
This upfront cost includes the cost of sourcing candidates through third-party recruitment agencies, in-house recruitment team salaries, paying for job board posts, and print, online, and social media advertising.
Additionally, you also have to factor in the cost of background checks, pre-employment assessment tests, and other internal and external recruiting costs.
On average, business owners spend $1,252 annually on new employees’ training and development initiatives. Companies have to incur these onboarding costs to ensure productivity and sufficient returns from new hires.
Training costs include on-the-job training, mentorship initiatives, orientation costs, and initial job training. These costs often vary between companies and regions, and can also be influenced by several different factors, such as company size, employee’s skill set, and the type of training applied.
You also have to consider the fact that any time that these new hires spend on training is time that you’re paying for, without them being productive.
Cost of salaries and employee benefits
Employee salaries are the single biggest expense for a majority of companies. American private companies spend up to 70.4 % of their total expenses on their employee’s salaries and benefits.
On average, employee benefits cost between 1.2 and 1.45 times the employee’s base salary. The employee benefits vary in different companies based on company size, culture, and annual turnover.
The basic benefits include medical, paid time off, retirement benefits, medical and life insurance. Although employee benefits increase a company’s labor costs, there is evidence to show that the corresponding productivity increase you get from employees by offering these benefits compensates for the cost.
Bad Hire Costs
Bad hires refer to situations where new employees do not gel with your company culture, traditions, objectives, goals, or other employees, and they therefore negatively impact your company’s success.
Bad hires are extremely costly for a company. Jörgen Sundberg, CEO of branding agency Link Humans, estimated the cost of a bad hire at $240,000 across hiring costs, onboarding resources, and salary paid.
The U.S Department of Labor estimates that an average bad hire costs companies up to 30% of their first-year earnings and has 41% less productivity than a good hire.
Minimize your hiring costs
Hiring the right talent is a hassle. And even after spending thousands of dollars and lots of time, you still aren’t guaranteed a perfect fit.
Take the guesswork out of hiring using Devlynk, a platform that brings together freelance software developers and employers. Our process automatically connects you with qualified talent who can get your development tasks done. You won’t have to worry about going out of your way to recruit and train your people; with Devlynk, your new hires come to you.
Post your requirements today and get the talent you need!