$240,000 per employee.
The employer and employee each pay half. (The self-employed pay the full cost of both taxes themselves.). Employers also have to pay a federal unemployment insurance tax of 6.2% on the first $7,000 of each employee's wages. Illinois adds on a state unemployment tax that's currently 3.9% for new companies on the first $12,520 of wages. Joe Sherrier, director of human resources for Employment Enterprises -- the company that manages Garland's HR -- said that as a general rule, business owners should to expect an employee to cost an additional 25% to 30% on top of base salary each year. It may cost as much as $150,000 to replace an information technology employee who earns a salary of $60,000 a year, according to James Del Monte of JDA Professional Services, Inc., one of Houston’s leading IT staffing firms. It may cost as much as 150 percent of the salary to replace a management position, according to a February 2012 article from Dun and Bradstreet’s Business Research website. 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. The 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. The costs to replace an employee vary by their earning level, so training costs also vary. The Sasha Corporation averaged the results of 15 studies that determined average costs to replace an $8 per hour employee, determining an average cost of $9,444.47 per turnover. Even when the 33 percent of estimates with the highest prices were removed from calculations, replacement costs were $5,505.80 per turnover. SOURCE: AP/ Mike Groll. The cost of employee turnover for businesses is high, regardless of the level of wages being paid to the departing or incoming employees. Workplace policies that improve employee retention can help companies reduce their turnover costs.  Real Cost of a Bad Hire. According to a blog post by a well-known recruiter named Jorgen Sundberg, the real cost of onboarding is $240,000 per employee. That's some serious sticker shock. Sundberg now runs Link Humans, a content marketing company.  Part of the reasons that cash-strapped businesses hesitate to start hiring, even when they need employees, is due to the actual cost of hiring. It's easy to forget that an employee, in terms of cost, means more than just the salary which can be substantial all by itself. The 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. The Cost of Salary + Benefits. The obvious cost of a new employee-the salary-comes with its own bundle of side items, as well. Benefits range from the minor-free coffee-to the major such as gym memberships, life insurance, disability coverage, dental plans, tuition reimbursement... the list goes on. The 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. Vacation is another cost but is subsumed in the basic salary. The costs to this point (basic salary, employment taxes and benefits) are typically in the 1.25 to 1.4 times base salary range-e.g. the cost range for a $50,000/year employee might $62,500 to $70,000. Space. Unless you are hiring traveling salespeople, you need to provide some physical space to house the new employee. Basic salary and employment taxes are a minimum-in most cases you will need to provide some benefits. Typical benefits for a $50,000 salaried employee include life insurance ($150) and health coverage ($2,000-$3,000 for single persons; $6,000-$7,2000 for families-http://www.ahrq.gov).
http://money.cnn.com/2010/03/26/smallbusiness/employee_costs/index.htm http://work.chron.com/average-cost-hire-new-employee-13262.html http://www.investopedia.com/financial-edge/0711/the-cost-of-hiring-a-new-employee.aspx http://smallbusiness.chron.com/average-cost-train-new-employee-44072.html https://www.americanprogress.org/issues/labor/report/2012/11/16/44464/there-are-significant-business-costs-to-replacing-employees/ http://www.inc.com/john-brandon/real-cost-hiring-wrong-employee.html http://www.investopedia.com/financial-edge/0711/the-cost-of-hiring-a-new-employee.aspx http://www.investopedia.com/financial-edge/0711/the-cost-of-hiring-a-new-employee.aspx http://web.mit.edu/e-club/hadzima/how-much-does-an-employee-cost.html
what is the cost to hire an employee