Jim Johnson (speaker) argues hiring is much more expensive than commonly assumed, estimating a low-side total cost of roughly $50,000–$75,000 per new hire. He emphasizes hidden components such as training time and opportunity costs (lost sales or productive hours while training).
About $50,000 to $75,000.
I want to make sure everybody heard that, how expensive it is to hire somebody. Because we don't think that way. We think, oh, this person is going to make us money. It's going to create. Solve problems, create money. But the reality is it cost about 50 to $75,000 on the low side to hire somebody. That's the low side. And think about. You're like, well, that doesn't cost. I can just start paying them when I pay them $1,000 a week or whatever the number is. But think about the training time that's necessary. That amount of time takes away from opportunity. That could have been a sale, could have been something else that we might do.
