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You're missing the fact that the employer also has to pay UE tax on the new employees wages - starting back from zero.
Scenario 1:
1 person works same role all year, I pay 1.5% in UE tax on their first $15K, they make 60K in the year.
Scenario 2:
I go revolving door at same wage, but a new employee every quarter. I pay 6% in UE tax.
Money is also money.
OK, so my original premise was correct. They aren't losing or having to pay more money as much as their senior employees time is being wasted by having to train new employee after new employee. So maybe the language and the wording in the conversation I was listening to needed to be changed in order for it to be accurate.
OK, so my original premise was correct. They aren't losing or having to pay more money as much as their senior employees time is being wasted by having to train new employee after new employee. So maybe the language and the wording in the conversation I was listening to needed to be changed in order for it to be accurate.
Uh. No. Read again.
1.5% of the first 15K is lower than 6%. For UE tax.
Recruiting and advertising have actual real $$ expenses.
Can't figure out if you're being intentionally obtuse or not.
Yes, but if it's just that then that doesn't seem to be as big of a deal as they were making it. Especially for people who make 30-40k per year as I stated earlier.
2. Cost to interview the employee. Realize that I can be doing something else if I don't have to interview you. Also we have more than one interview. We have a team interview as well and that is more cost. A couple months we had 4 guys that were spending a day interviewing people, lost productivity there.
3, Orientation. We hold them once a month and you can't start working till you have been thru orientation.
4. Background check, drug test, employee verification all takes time and money.
5. Department specific training. Around here that lasts 3 to 6 weeks depending on the job.
6. The Hospital Campus is big and it can take months to learn where everything is. I have been here for almost 17 years and I remember that it took about three months to remember where all the departments are.
I read somewhere that it can cost an employer a years time for new hires. That is a big investment that a company is making in you. The company can see the benefit in keeping you there. They will hopefully even offer an increase after a year because now you are more valuable to the organization.
2. Cost to interview the employee. Realize that I can be doing something else if I don't have to interview you. Also we have more than one interview. We have a team interview as well and that is more cost. A couple months we had 4 guys that were spending a day interviewing people, lost productivity there.
3, Orientation. We hold them once a month and you can't start working till you have been thru orientation.
4. Background check, drug test, employee verification all takes time and money.
5. Department specific training. Around here that lasts 3 to 6 weeks depending on the job.
6. The Hospital Campus is big and it can take months to learn where everything is. I have been here for almost 17 years and I remember that it took about three months to remember where all the departments are.
I read somewhere that it can cost an employer a years time for new hires. That is a big investment that a company is making in you. The company can see the benefit in keeping you there. They will hopefully even offer an increase after a year because now you are more valuable to the organization.
Ah, this makes sense. The cost of the trainer and the trainees/0 production crossed my mind. But unless it's a sales job or a job that directly impacts bottom line, I just find it hard to believe that keeping say... 100 employees around that perform well and get raises each year is less expensive than replacing all 100 employees every few months at their starting hourly wage.
ROTFLMAO Well, that's a new way to run a company. Let me know how it works out.
How does a high turn over rate end up costing a company more money? Best I can guess, the only thing I can think of is they're going to have to keep training new people. How is that more expensive then keeping tenured employees around and giving them raises each year?
Training time, lost time having someone doing the job, lost time having to interview and do orientation again, lost information, lost chain of information (why something was done, where the paperwork is, who they talked with,) lost contacts if the employee only worked with one vendor and the vendor doesn't know anyone else, potential loss due to theft of supplies or information (something short termers might do,) loss from litigation due to differences of opinion on why the person left....
It takes months, perhaps even a few seasons, to bring people as a group working together up to speed.
Here's a simple example not even related to work:
A hundred volunteers started a three day specialty horse show, back in the day.
Everything was done by phone and mail then, and most of the volunteers brought to the show their organizations skills, in sales, office, teaching, insurance, banking, and the professions. In other words, they were adults used to working in a team of some kind. Thousands of hours to put on a three day show.
The first show almost killed us.
The second was fully involved, and we were getting our rubber on the ground.
The third year was a walk. Everyone knew their job, and most importantly, what NOT to do or double check, because it was being handled by someone they knew.
As I said, building a team, even in non-profit, can take months. Expensive in time and/or money.
I finally read all these posts and man the OP is a bit confused as to how business works.
It costs lots of money to hire new people. Yes the people that you have handle the hiring process are allready getting paid but now that employee resourse has to spend the dollars the employer is paying them on finding new people, getting them ready for hire, training them, doing everything else to get them started, holding their hand. All that time is time they can not bring in more revenue for the company. No one makes any money when a new employee comes on site. No one is making the company a dime. The company is taking an employee resource off the market so that they can get a new or future employee set up so that they can eventually make money for the place.
The OP seems to think that these people are paid anyway, so no money is lost. But plenty of money is lost, money paid out for a non income producing job function. Time that could be making money is being used because of high turnover.
I finally read all these posts and man the OP is a bit confused as to how business works.
It costs lots of money to hire new people. Yes the people that you have handle the hiring process are allready getting paid but now that employee resourse has to spend the dollars the employer is paying them on finding new people, getting them ready for hire, training them, doing everything else to get them started, holding their hand. All that time is time they can not bring in more revenue for the company. No one makes any money when a new employee comes on site. No one is making the company a dime. The company is taking an employee resource off the market so that they can get a new or future employee set up so that they can eventually make money for the place.
The OP seems to think that these people are paid anyway, so no money is lost. But plenty of money is lost, money paid out for a non income producing job function. Time that could be making money is being used because of high turnover.
People in HR don't make the company money outside of hiring good salesman or people who can make the company money. That's their main job for large corporations. So the fact that they're finding good people to hire isn't costing the company MORE money, what else could they be doing to generate money for the company besides hiring good people? I just don't follow the logic you guys are losing. Maybe I should write a book.
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