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The New Math – $16.56/hr. = $24.39/hr. – Good Hiring Decisions

I was reading a newspaper article last week about the costs of employee benefits.  The cost of benefits is staggering.  There is no relief in sight.  As I was reading the article, I began to realize that now – more than ever – it has become critical to make good hiring decisions.

The article I read uses a real world example of an Administrative Assistant earning $16.56 per hour ($34,458.00/year).  The benefit costs for this employee total $16,280.00! That represents 47.25% of the salary.  This started me thinking.  This $35,000 employee is really a $50,000 employee!

When you hire a $16/hr. employee are you screening, testing and interviewing as you would for a $50,000 employee?  Are you REALLY sure that you want to hire that $16/hr. employee before you’ve tried them out to see if they really are a keeper?

Let’s start with the easy part.  Is that $16/hr. candidate really worth $50,000+ per year?  Do they have the basic spelling, grammar and math skills you would expect of a $50,000 employee?  Do they have the computer skills, writing skills, and interpersonal skills to warrant $50,000 per year?  And finally – have you VERIFED that they have the skills they claim?  We see resumes every day where candidates claim software skills, communication skills, lightning fast typing speed – only when we test them those claims are unfounded.  Testing is simple and inexpensive these days.  You’re making a big (in this case $50,000) investment.  Spend a couple of hundred bucks and test your candidates.  Oh – and make sure the assessments you use have been proven valid and reliable.  If not you are creating potential liability (but that’s another post).

Now the easier part – why not let a professional (shameless plug) do the hiring?  Well, Scott – “recruiters are expensive” you say.  Yes – those of us that are good may be “expensive”.  We all know that benefit costs are rising.  But when you add those costs to payroll taxes and insurance, the cost of a Temp to Hire arrangement is often less than you hiring on your own.  PLUS – you get the benefit of trying out that new employee before you place them in your payroll and therefore your benefit plan.  And – if that employee does not perform like a $50,000 employee wouldn’t you rather know that before they were eligible for your benefit plan?  Our costs on the same $16.56/hr. employee mentioned above would be….well, call or email me ( and I’ll let you know.  I will say this – you will be surprised what a value it is!  It costs you ZERO to ask us for help.  We only get paid if we find you the best candidate available for your position and you choose to hire that candidate.

SPECIAL OFFER For anyone placing a new Temp to Hire Order this week (July 10-14, 2011) I will take $1.00 an hour off the bill rate.  That’s a savings of well over $500.00!!!   And you have absolutely NO RISK.  If we don’t find the best employee for you – you don’t pay me.

This new math is a reality and it’s not going away – in fact it’s only going to go higher as benefit costs increase.  Committing to an employee is an expensive proposition.  Make sure you take the steps necessary to increase the likelihood that your new hires are keepers.  Let us help.


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