In fact, a new employee earning only $33,000 a year has a greater financial impact than taking out a $750,000 mortgage, says hiring guru Mel Kleiman, author of Hire Tough, Manage Easy.
He says that while both represent an ongoing outflow of about $3,750 per month, the employee comes with the added costs of training,time and supplies. Plus, employee costs will rise over time.
This is why managers should evaluate every hiring decision as a long-term liability and ask if the cost of the new asset will be more than paid for by the benefits delivered.
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