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staff recruitment & selection

There are many costs associated
with replacing staff

The next time a staff member resigns, take a moment before you begin the process to replace the departed employee to ask: What will it really cost to hire a replacement?

It’s not going to be cheap. The process will take your time, and that of others, along with other resources. Each has a cost associated with it. Some writers suggest that the cost to recruit, interview, hire and train a new employee is between 30 and 200 per cent of that employee’s annual salary. Here are some of the costs that may be associated with the various stages of the hiring process:


  • time to prepare recruitment materials (advertising, web postings, handbills, etc.)
  • time to arrange advertising
  • cost to purchase advertising space
  • cost of a recruiting firm (if one is used)
  • time spent meeting with recruiters


  • time to review resumes or applications
  • time to schedule interviews
  • time to prepare interview questions
  • time to prepare interview panel members
  • time to conduct interviews
  • time to discuss the interviews and select the best candidate(s)
  • time to check references on the tentatively
    selected candidate(s)
  • time to contact successful and unsuccessful
  • moving expenses (if paid by your organization)
  • cost of security screening, child welfare checks, pre-employment medical, etc.

Day I

  • cost to obtain supplies and equipment for the new hire (business cards, name badges, office or other supplies, etc.)
  • cost of uniforms (if supplied)
  • company orientation (time for both new hire and staff providing the orientation)
  • safety and other required training (time for both new hire and staff providing the training)
  • time for new hire paperwork (time for both new hire and staff preparing the paperwork)

Another factor to consider is how long the position remains vacant, and who will be picking up the slack until someone is hired and up-to-speed. Overtime may be required to ensure the work gets done. The requirement to do extra work can be stressful for remaining staff, creating the potential of stress-related absenteeism. It can even lead other employees leaving for less stressful jobs. If the departed employee had expertise not possessed by others within the organization, there may be a requirement to hire through a temporary agency or to contract out some of the work.

Truly, your organization faces significant costs every time an employee leaves. Knowing the costs involved highlights the importance of making good hiring decisions and retaining those good hires.

During his Interview Right to Hire Right workshop, Nelson Scott trains managers and supervisors to interview effectively and make the right hiring decisions and to use meaningful staff recognition as a tool to improve staff retention and reduce turnover.


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© Nelson Scott.  All rights reserved.

A professional trainer, speaker, and consultant since 1995, Nelson Scott works with organizations that are committed to making the right hiring decisions, developing and retaining productive staff, and strengthening relationships with customers.  Learn more by visiting or e-mailing


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