Unless you’re a seasoned HR professional, the hiring process and the costs that go with it might seem straightforward. But the truth is, there’s much more to employee cost management than salary and payroll.
- New hire costs
- Training costs
- Project assignments
- Technology and equipment
- Employee benefits
For growing businesses, onboarding new employees doesn’t just mean bringing on new personnel. You’re also bringing on additional costs. And depending on how many new employees you plan on hiring in a given time period, managing these costs will require an assessment of available resources and available capacity.
Recruitment-related costs are probably the most overlooked when it comes to bringing on new team members due to the sporadic nature of the hiring process. From pricey job postings to the time spent interviewing candidates, even looking for new employees can get costly.
Once the hiring process is completed, new employees will need to be integrated into your business. To do this smoothly and efficiently, a fleshed-out training process is your best bet. Training presents more costs that you might not have initially taken into consideration.
While it might not seem obvious, training often ends up becoming one of the greatest expenses your business will face. Not only does it take time, but it often means pulling a more experienced employee from actual work to conduct the training. And the number of hours spent on it can really add up.
If training is something you feel your business doesn’t have the resources for internally, you can always explore options like outsourced programs or online regimens.
As they become integrated, new employees are tasked with actual work so they can put their training into practice. The cost of this is harder to gauge as it pertains to both personnel costs and the costs related to the projects themselves.
Without proper oversight, it’s easy to put too many employees on one project, resulting in work that’s less advantageous towards your bottom line. (Hint: You can get a better estimate of how much time projects with efficient time tracking solutions.)
Whether your employees work in an office or on a construction site, there are certain equipment, work space and technological requirements that they will need in order to do their job effectively.
Instead of waiting until an employee’s first day on the job, take an inventory in advance and make sure your employees are prepared with the tools they need to contribute to your business right from the get-go. And in addition, make sure you’re prepared to manage the inevitable costs needed to supply such items.
Aside from basic salary and compensation requirements, many employees will also be eligible for various benefits including health insurance, life insurance, disability insurance, retirement and paid time off.
The subtleties of your different benefit plans can threaten to raise overall employee costs far beyond salary and payroll (but they can also make for happier employees).
We hope this makes clearer the costs associated with employing staff—including tracking their time accurately—so you can best reap the benefits their added productivity will bring!