What does it cost your company to hire someone?

[Anonymous]

Heard it’s between 25k and 50k at my company, not including relocation or signing bonus. Seems absurd…but google says that’s about expected.

[Anonymous]

That's on the low end, but like all questions in this forum, the answer will be dependent on factors that include industry, seniority level, training required (company policies, strategies, software, procedures, training on a new industry for some hires) and the hiring process itself. The hiring process can be costly.

My old company was a professional services firm and new hires typically cost $65k, but that includes everything listed above, and more.

[Anonymous]

Anonymous wrote:That's on the low end, but like all questions in this forum, the answer will be dependent on factors that include industry, seniority level, training required (company policies, strategies, software, procedures, training on a new industry for some hires) and the hiring process itself. The hiring process can be costly.

My old company was a professional services firm and new hires typically cost $65k, but that includes everything listed above, and more.

Wow that’s crazy….

[Anonymous]

25% of the new hire’s salary.

[Anonymous]

Costs more to fire people. I know two jobs ago they paid a $100k headhunter fee to hire me, plus 120k relo package. So $220k.

[Anonymous]

My company doesn’t pay signing bonuses or relocation (at least for non-executive level positions), so it’s just whatever the prorated time for a recruiter, plus management time to do interviews. Plus the cost of a background check. So I don’t know what all that amounts to, but I’m guessing nowhere close to $25k.

[Anonymous]

Anonymous wrote:My company doesn’t pay signing bonuses or relocation (at least for non-executive level positions), so it’s just whatever the prorated time for a recruiter, plus management time to do interviews. Plus the cost of a background check. So I don’t know what all that amounts to, but I’m guessing nowhere close to $25k.

I am not an executive but I do have 70k in un-vested stock if I quit plus I only have 60 days to exercise vested options which would cost me 10k out of pocket. So it is 80k on my side to join a company.

Not only that but bonuses are prorated and most company’s have to join before 10-1 to even get prorated bonus. Plus companies often have 90 days probation.

Without any sign on it needs to be a really big raise most people

Let’s say I interview your company today start in May. If it does not work out I am out the door miss out in March 2024 bonus and if I land new job next bonus is March 2025. Plus I lost all my invested stock.

To add to risk companies pay severance based on tenure buy quitting old job I put myself greater risk new job laid off.

My company is cheap we focus laid or people at companies where stock has tanked in employee options and RSUs. But if we need someone really good who has a good job we have to pay.

[Anonymous]

Anonymous wrote:25% of the new hire’s salary.

Which includes what, recruiter time/commission?

[Anonymous]

Anonymous wrote:My company doesn’t pay signing bonuses or relocation (at least for non-executive level positions), so it’s just whatever the prorated time for a recruiter, plus management time to do interviews. Plus the cost of a background check. So I don’t know what all that amounts to, but I’m guessing nowhere close to $25k.

Do you do any sort of training?

[Anonymous]

Anonymous wrote:That's on the low end, but like all questions in this forum, the answer will be dependent on factors that include industry, seniority level, training required (company policies, strategies, software, procedures, training on a new industry for some hires) and the hiring process itself. The hiring process can be costly.

My old company was a professional services firm and new hires typically cost $65k, but that includes everything listed above, and more.

How much energy do you put into retaining people? If the salary is, say, $125k, it is much cheaper to give a 10k raise if someone leaves than hire someone new.

I understand budgets don’t operate like that but curious.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My company doesn’t pay signing bonuses or relocation (at least for non-executive level positions), so it’s just whatever the prorated time for a recruiter, plus management time to do interviews. Plus the cost of a background check. So I don’t know what all that amounts to, but I’m guessing nowhere close to $25k.

I am not an executive but I do have 70k in un-vested stock if I quit plus I only have 60 days to exercise vested options which would cost me 10k out of pocket. So it is 80k on my side to join a company.

Not only that but bonuses are prorated and most company’s have to join before 10-1 to even get prorated bonus. Plus companies often have 90 days probation.

Without any sign on it needs to be a really big raise most people

Let’s say I interview your company today start in May. If it does not work out I am out the door miss out in March 2024 bonus and if I land new job next bonus is March 2025. Plus I lost all my invested stock.

To add to risk companies pay severance based on tenure buy quitting old job I put myself greater risk new job laid off.

My company is cheap we focus laid or people at companies where stock has tanked in employee options and RSUs. But if we need someone really good who has a good job we have to pay.

Wat…

[Anonymous]

If your company needs people with security clearances, those are costly so that drives up the average hiring cost.