The Costs of Hiring a New Employee in 2022

The Costs of Hiring a New Employee in 2022

Hiring new employees can be a complex and costly process, and a recent study has revealed what employers could expect to pay for their next hire. Employers can expect to spend about $4,000 on average though the precise cost will vary considerably based on their role as well as the size and location of the business performing the hiring.

These costs are distributed between a few different factors, including hiring personnel, job postings, recruiters, screening candidates, background checks, employee compensation, training, and equipment. An understanding of each of these costs can make it much easier to try and keep these costs down, so here is a closer look at each of them.

Hiring Personnel

Human resources personnel are a critical component of any hiring program. HR professionals are capable of handling the complex process of recruiting, onboarding, and training new employees while remaining within the law. However, these professionals come at a high price, generally within a salary range from $100,000-140,000 before accounting for benefits.


For employers that lack an HR department, external recruiters are a common option. These can supply qualified and experienced employees chosen to suit your needs. However, these agencies generally add a significant amount to the cost of hiring either through a flat fee, retainer, or a percentage of the position’s annual salary.

Job Postings

Writing a legally compliant and captivating job description is not an easy task. It takes time and skill to create a description that attracts the attention of skilled and experienced jobseekers, and once it is created, it will still need to be posted to a variety of job boards for potential candidates to find. There are online services that can help employers with crafting an effective job description, but often this will cost hundreds of dollars every month.

Screening Candidates

After acquiring a pool of candidates, the most difficult part of the process can begin, with the first step being to screen the candidates. Sorting through resumes and applications and then setting up interviews with the most qualified candidates is a time-consuming process.

Background Checks

After finding the best candidate, it’s time to perform a background check. This vital step confirms the personal information, employment, and criminal background of your applicants. This ensures that your potential new hire is everything that you expected and can go a long way to preventing the expense of hiring your new team member from going to waste. In order to prevent excessive expense but ensure an accurate and useful report, it is important to choose a provider you can trust.


On average, studies have shown that training new employees consumes approximately 46.7 hours as well as an extra $986 in costs. However, the time and expenses are worth it because it ensures your new hires quickly become ready and able to contribute.

Employer Takeaways

Hiring new staff is a significant expense, and the entire process is crucial to ensuring you attract and choose the right individual as well as prepare them to perform their role. As a result, it is important to choose staff who can do the job right and retain them for the long haul.

Background checks are made easy with Pre-employ. You can ask any questions you may have and learn more by contacting a sales rep today.