Information Technology - Blog V-Soft Consulting

Staffing Calculator Reveals Hidden Costs of New Hires

Written by Jessica Gassler | Sep 26, 2016 2:13:00 PM

Have you ever wondered how much it really costs to hire somebody into your company? Countless managers will put together a budget for a new hire only to have their estimated number blown out of the water when it comes to actually putting their new employee to work. In order to save your company money and ensure that a new hire is the best route to take, we at V-Soft Consulting have created an all-inclusive calculator.

What Does the Staffing Calculator Do?

Background check? Check. Drug test? Check. References? Check. Parking pass… what? Have you ever forgotten to mark down an important, but often overlooked expenditure for a new employee? You wouldn’t be the only one.

Hundreds of thousands of people are hired every day for a plethora of different roles. While each role can be vastly different, they have the same basic financial requirements to get in the seat. It comes as a surprise to many hiring managers that there is more than just the cost of listing the job, background or drug checks on the new employee, and training. They can forget to document the time they’ve spent on the phone scheduling interviews, the cost of dinners or lunches that are sponsored by the company, and even the price of a computer (if the new employee needs one).

The Staffing Calculator has been developed to give you an accurate estimate of how much it would cost you to hire an employee with real-time information.

Who is the Staffing Calculator for?

V-Soft Consulting has developed this staffing calculator with HR managers and hiring managers in mind. It’s no secret that hiring managers and HR managers have quite a lot on their plates and don’t have much time to devote to additional tasks.

Why Do I Need the Staffing Calculator?

Imagine the benefits of being able to properly budget for your department for the year, simply by being able to identify those usually “unexpected” costs of hiring a new employee. Perhaps it’ll give you better insight on if it’s more appropriate to hire a new employee or simply outsource the work if it’ll be cost-prohibitive to have someone at a desk full-time. There are hundreds of possibilities. The calculator was designed to save you time, money, and headaches.

Statistically, companies that consider staffing tend to underestimate just how much it costs to hire on a new member to their team.

  • For most companies it can take over 6 months for an employer to “break even” on the costs versus benefit of a new employee
  • There are reports that employees can cost up to 3x their salary in just their first year
  • On average, it costs a new company around $4,000 above the salary of the new hire to employ them
  • If you think hiring a new employee is expensive, think of losing one. Some reports state that losing a salaried employee can cost as much as twice their annual salary, especially for one in a higher, managerial position.

When Should I use the Calculator?

As soon as you’re considering your options for expanding your workforce. It’s never too early to test the waters – in fact, the sooner the better! Knowing what costs will be early on in the process will help you be sure you are comfortable with the costs before diving in too deep.

Whenever you’re ready to see how much it will cost you in the first three months of an employee’s life in your company, click here to use our Staffing Calculator. If you’re still confused about what this answer means or feel that it doesn't accurately represent the number you expected, you’re also more than welcome to reach out to one of our friendly, no-pressure staffing experts. They will be happy to walk you through what it is that is troubling you.