average cost of hiring and training a new employee
Training turns out to be one of the costliest investments a company can make. In a report from Training magazine in 2007, companies spent an average of over $1,200 annually per employee. In 2005, employees spent an average of 32 hours per year on training.And those aren't necessarily only new hires who would not only require the same on-the-job training and continuing education as current employees, but the additional hours and cost of orientation and initial job training.he level goes up to 50% productivity for weeks 5 through 12, with corresponding cost of 50% of employee salary. Weeks 13 -20 usually bring the employee up to 75% productivity rate, with the cost being 25% of employee salary. Around the five-month mark, then, companies can expect a new hire to reach full productivity.
Not every new hire will demand the entire process, but even an $8/hour employee can end up costing a company around $3,500 in turnover costs, both direct and indirect.he Cost of Training. Recruitment is just the first step in the process; once the right person is in place, businesses need to provide adequate training so the new employee can do the work and start producing for the company. Training turns out to be one of the costliest investments a company can make.