Adding new employees can be a great way to accelerate the growth of your business—if you can afford them. One of the factors that separates successful firms from chronically cash strapped ones is being able to properly calculate the cost of adding a new employee. Before you can know if now is the right time to invest in additional employees you have to calculate the cost per hire.
Todd Miller
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Issues to Consider When Calculating Cost Per Hire
Even with a standard formula, companies still have a lot of flexibility when deciding what needs to be included and what should be left out. Issues that a company must decide on when calculating CPH are:
- How to calculate the salary costs of employees related to recruitment activities
- Who should be included as a new hire?
- What time period should be used for the calculation
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Cost Per Hire
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How to Accurately Calculate Cost Per Hire
Prior to 2012, the ways firms calculated CPH varied significantly. Some calculations were much more accurate than others. The Society for Human Resource Management (SHRM) and the American National Standards Institute (ANSI) collaborated to develop a standard CPH formula.
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Cost Per Hire
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What is the True Cost of Adding a New Employee?
Adding new employees can be a great way to accelerate the growth of your business—if you can afford them. One of the factors that separates successful firms from chronically cash strapped ones is being able to properly calculate the cost of adding a new employee. Before you can know if now is the right time to invest in additional employees you have to calculate the cost per hire.
Topics:
HR
Cost Per Hire
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What Is Your Employees’ Commute Actually Costing Your Company?
Not surprisingly, for many people commuting to and from work is the worst part of the employment experience. Old roads, drivers who seem more focused on texting, inadequate and crowded mass transit, and growing urban centers are increasing the length of commutes for many employees. Lengthy commutes take a toll on employee happiness and productivity. They are also a top motivator in employees looking for a new job.
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Commuting
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Free Yourself From the Burden of Payroll by Learning the Art of Delegation
Everyone is busy. It's easy to fall victim to repetitive tasks the eat up valuable time during the workweek. With a little planning and some clear vision for good time management, HR professionals can reclaim the workweek by delegating burdensome tasks to others. Payroll tops the list of monotonous tasks that must be completed, but can eat up a disproportionate amount of time. Free yourself from this time trap by embracing the concept of delegation.
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Human Resources
Payroll
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DHR eBook: 10 Simple Ways You Can Increase Employee Retention and Decrease Turnover Rates
Hiring employees isn't enough to keep your small business running; you also have to keep them. Turnover rates are the silent killer. They're not as obvious as weak customer reception, but they're just as deadly. Every employee you lose represents cost and lost value: cost, because you'll have to spend on finding and hiring a replacement; lost value, because you're not getting the expected return from your investment in hiring them in the first place. Fortunately, there are plenty of things you can do to keep retention high and turnover low.
Employee Background Checks: 5 Rules to Help You Walk the Line
There is a lot on the line when it comes to doing background checks on potential or current employees. A bad hire can cost your organization thousands of dollars, or more. It can also lead to lawsuits or loss of proprietary information. But, an improper or illegal employee background check can also lead to litigation, expensive fines, and damages. Here are five rules to help you perform a broad background check that keeps you safely within the law.
There Is Power in Positive Workspaces
Those who remember the 1999 cult classic Office Space, featuring Jennifer Aniston, might recall that the plot centers around an HR nightmare at a tech company. Managers in the film are self-serving and clueless while the skilled workers seek both escape from the mundane and revenge on their superiors. Efficiency consultants are brought in to reduce costs, boost productivity and identify which employees can stay and which must go based on interviews and manager input.
5 Compelling Reasons to Background Check Your New Hires
Whether you are a serial entrepreneur building out your latest business idea, the owner of a small business ramping up production or the hiring manager for a larger firm, the recruitment process can be difficult, painful and lengthy. Once you have found the perfect person for the job, it is tempting to just go ahead, but there is one more step you need to consider.