Top 5 Hidden Costs of Hiring New Employees You Need!

The COVID-19 pandemic has accelerated a shift in the labor market as part of the great resignation. Companies are looking at hiring new employees but are unable to fill job positions. The pandemic forced a new paradigm shift in the workforce and how people work. After more than a year of working remotely, employees have acclimated to working from home. Many workers have since reevaluated their professional and personal value system, and the cost (work condition, salary, commute time) of returning back to work onsite. As a result, there is an unprecedented job crisis in the workforce.

Hidden Costs of Hiring New Employees

The hidden costs of hiring new employee is staggering, not to mention challenging for employers to find the right employee amidst the great resignation. Although companies are offering flexible work environments, care, and culture to attract new talent, each need to hire comes with 5 hidden costs. Don't take our word for it, here are some stats from industry leaders about the average time and costs with hiring new employee:

On average, it takes 36 to 42 days to fill an average position in the US. -zippia.com

It takes a company 1 to 2 months from the point of need to hire to filling a position. The average cost of time varies by company depending on the number of staff involved in the interview process.

Need to Hire Average Vacancy Cost

The average vacancy cost is $98 per day. This comes out to an average of $4,129 -Johnson Services Group. This average is based on hiring new employee and before they have even started on their first day of work! If an employee leaves, the cost doubles.

New Employee Break-even Cost

After investing in hiring new employee (mid-level) it takes up to half a year for an employer to recover their cost in Return On Investment (ROI) from the need to hire phase. Many hours have been invested in this process and it all starts over again upon hiring new employee again.

It takes up to 6 months to break even on investment. -Harvard Business School

Need To Hire Again Cost

The average cost of a bad IT hire is around 30% of the employee's first-year earnings. Approximately 41% of US companies stated that last year, their cost of a bad hire was at least $25,000. For 25% of companies, that cost was at least $50,000. -goremotely.net

Hidden Costs of Cyberattacks

The hidden cost of cyberattacks is also staggering. With record-level highs of cyberattacks targeting SMBs, businesses can’t afford to be unprepared. The risk of being compromised is even greater today as each remote connection is the new workplace. This clear and present danger comes with a cost that companies can no longer ignore. The financial cost goes beyond the recovery of a cyber attack to the reputational cost of the compromised company. Many businesses (60% of them) go out of business within 6 months of a cyber attack. This is what's at stake beyond the need to hire hidden costs. Here are some stats from industry leaders:

PURPLESEC Reports:

• 43% of cyberattacks target small businesses.
• 47% of small businesses had a least one attack in the past year.
• 60% of small businesses go out of business within 6 months of a cyberattack.
• 92% of malware is delivered by email.

“The current state of cyber-affairs is an especially alarming one because ransomware attacks are growing not only in numbers, but also in the financial and reputational costs to businesses and organizations.”

Forbes.com

Endpoint Attacks

Phishing attacks surged in January 2021 to reach an all-time high of 245,771 attacks in a single month in the history of the Anti-Phishing Working Group (APWG) organization.

Phishing Survey Results:

• Business e-mail compromise scams up from $48,000 to $85,000 in wire transfer requests.
• Top 3 most targeted sectors: Financial Institutions (24.9%), Social Media (23.6%), and SAAS/Webmail (19.6%).
• 83 percent of phishing sites us HTTPS encryption.
• More than 207k unique phishing websites detected.

Hire IT Support Cost Containment

Everything as a Service (EaaS) is a cost containment alternative solution to hiring new employee that empowers your business and remote workers to stay secure and protected. Leverage the power of EaaS to keep up with your growing technology needs during the great resignation. Through fast setup and immediate results, you can see, it's never been this easy to get a subscription service that will scale as needed. Subscription services are month-to-month and come with instant lift, cybersecurity, and fast scaling. And, when you need experienced IT pros, they are available on demand. This cuts down on the need for hiring it support.

About Us

Everything IT Pros is a Managed Services Provider (MSP) offering managed support care and security your company needs. Running your business is challenging enough with the IT worker shortage and ongoing security threats. Many businesses don’t have the time or the money to spend on hiring new employee again, maintaining security, or pay IT support hourly rates. We are the first to offer a subscription-based package that companies can invest in with the latest Artificial Intelligence (AI) security built into our solution.