Accuchex Blog

California Employers: The Cost of New Hires 2018

Posted by Leslie Ruhland on Dec 22, 2017 9:24:03 AM
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Being an employer in California can be a challenging endeavor. One of those challenges is navigating the real costs of finding and bringing on new hires.


In the midst of all the tasks required to recruit, vet, interview and hire new employees it is easy to lose sight of the costs involved. However, being aware of and managing the costs involved in hiring employees is critical.

Along with the required family leave, paid sick leave, and other costly employee benefits in California, employers must factor in the ever-increasing minimum wage scale. All of this together makes for a daunting task to make a business cost-effective and profitable.

The Hiring Process In California Can Be An Costly

When it comes to a new hire, there is more to consider than the prospective salary being considered. Employers must consider the accumulated costs of recruiting, screening, interviewing and hiring, as well as training and onboarding the new hire.

In fact, depending on the particular position and the industry, the costs can easily be upwards of thousands of dollars. 

This is why hiring must be carefully considered in the fiscal and operational strategy and planning of an organization. It is essential to take into consideration the actual costs of a new hire before committing to recruiting candidates.

While not every new employee hired will generate this much expense, even an $11 an hour employee can end up costing a company close to $4,000 in turnover costs, both direct and indirect. In addition to the hiring costs, there is always the prospective costs of either losing a new employee, or having to let them go and find a replacement.

The Rising Costs of Acquiring a New Hire

Most employers in California are keenly aware of the the actual costs associated with bringing on a new hire and it can be sobering. For example, the employer contributions to payroll taxes in California are among the highest in the nation.

In addition, the overall business tax climate in California still ranks near the bottom out of 50 states. That. along with having the highest income tax rate in the nation, it's easy to see that payroll management and human resources is a priority for California businesses.

This infographic provides a concise breakdown of the costs of hiring new employees.

new-employee-hiring-cost-infographic-recruiterbox3.jpg(Courtesy of Recruiterbox)

Get Professional Help With Your Payroll Management

One of the key strategies for reducing overhead, employee costs, and streamlining operations is to outsource many of the more time consuming and labor intensive processes. One of the most strategic options is to consider outsourcing your payroll management functions.

A professional agency such a Accuchex can provide much-needed help with Human Resources needs and questions. Accuchex is a full spectrum Payroll Management Services provider offering expertise in Time Management, Insurance and Retirement issues, as well.

If you are looking for reliable resource for your HR issues, we can help. Get your Free Download: Payroll Outsourcing Guide to help you make an informed decision, or call Accuchex Payroll Management Services at 877-422-2824.

In addition, we invite you to take a tour of Time2Pay - it makes payroll easy.


Topics: recruiting and hiring, HR management practices, new hire, employee onboarding, employee turnover

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