The cost of hiring new employees includes advertising cost. interview, and testing time Recruitment cost also include travel expense related to hiring will employees are also significantly less productive during their first few mouth on the job.A new employee must learn the new systems and procedures and this takes time. For example exempt employees on average are only 75 percent productive during their initial six months of employment. If the average revenue per employee $23.000 per year revenue.
Per employee being a surrogate for productivity then revenue for six months would be 50 percent of that, or $146,500. The cost associated with an employee being non-productive in the first six months is therefore 25 percent of that or $ 36,625.12