The Hidden Costs of a New Hire - Accounting Accidentally

Managing your business requires you to make dozens of decisions every week, and growing your firm can be overwhelming.

There are many aspects of managing a business, including the need to manage client relationships, keep your employees happy, and deliver a quality product or service.

Finance may be the most challenging area of business management, and hiring employees is a big decision for any company. Use this discussion to learn about the hidden costs of hiring and managing your workers.

Contents

Where Are They?

Finding great job candidates is the key to success as a manager. If you hire the wrong person, you may spend a great deal of time and money to hire and train someone who is simply not a fit.

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If you’re considering a recruiting company to find candidates, keep in mind that these firms will typically charge a large amount for the service they provide, up to 25% of the first year’s salary.

Paying those level of fees can be challenging for a small business.

Along with these fees, you will also have to pay to process your new employees. This can involve criminal record checks, identity verification, and employee referencing, all of which will force you to spend more money. Of course, though, you can’t avoid these steps if you want a good team.

What Do They Know?

Employees can only be productive if they are properly trained.

Keeping your employees up to date with latest standards and laws will require a consistent training effort. People won’t be willing to learn things on their own time, making it crucial that you set aside training time during their working life.

While training may require a large investment of time and money, failing to train your staff will eventually cost you far more in worker mistakes and low productivity.

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Getting Protection

Every firm must protect themselves from legal costs related to employee injuries.

The risk of injury to workers can vary greatly, depending on the type of work performed, the environment (indoor or outdoor), and the type of equipment used. Most states require businesses to carry workers’ compensation insurance, but you’ll need to create a safe work environment to minimize the costs.

Talk with an insurance agent to find out the proper types of insurance you need to protect your business.

Potential Backlash

If you make a hiring mistake, you may face some potential legal issues- and you need to take steps to protect your business.

Terminating an employee can be difficult, and you can read HasnerLaw.com for details which will show you why you have to be careful in this area. Taking action is difficult, but may be necessary to keep your business on track, and to find a new employee who is a better fit.

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