Ever wonder how much the average employee “costs” their employer? Most estimates are in the two to three times annual salary range but employees, particularly new employees fresh from the interview and job offer process, rarely know how much this new employer is counting on performance.
Unless you’ve actually run a company and hired employees, it can be difficult to fathom how much an employee costs an employer. The costs can be significant and unless that employee is able to pull his or her weight by producing revenue or something of value, the employer won’t, and shouldn’t, hire him or her.
What does an employee “cost?”
There are a myriad of costs associated with hiring anyone these days. Some of these are one time costs and some are ongoing. Regardless, they have to be paid by someone. Among them are:
Advertising for the position, identifying candidates, reading resumes, making phone calls, transportation, interviewing, meals, hotel expenses, use of vehicles.