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.
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.
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.
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
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
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:
“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
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:
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