What does it cost to hire and train a new employee? One estimate is that it costs $3,500 to replace an $8/hour employee. Other estimates are from 30 percent to 400 percent of the departing worker’s salary, depending on their position and skill level, according to Inc.com.
The tangible costs for recruiting and training will vary from business to business and industry to industry. But businesses face intangible costs as well, including:
- Lowered productivity
- Extra work/affect on morale for remaining staff
- Lost knowledge
- Customer dissatisfaction due to inadequate staffing
In an increasingly competitive job market, it may be even more difficult to attract qualified employees. Small businesses may find it especially tough to compete with larger organizations.
One solution: According to the Society for Human Resource Management (SHRM), health care coverage is one of the top benefit offerings to help recruit and retain valuable employees. There are many benefits to providing health care coverage to employees through SHOP, including the potential for a small business tax credit to offset the cost.
Learn more about the benefits of providing health care coverage to employees here.
Sources: Inc.com and Society for Human Resource Management, Oct. 15, 2015.