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Employers Paying Hidden Costs for Recruitment in Tight Labor Market

The real-life markup on recruiting and employing one $15/hour employee for a year is around 63%.

By Joel Kranc | January 30, 2023 at 08:09 AM
Stock photo: Businesspeople in a meeting

The tight labor markets that have persisted since the beginning of the Covid-19 pandemic are forcing American businesses to spend more and face greater costs in recruiting hourly employees.

A new report from Bluecrew called “The True Cost of Recruitment and Employment” shows the real-life markup on recruiting and employing one $15-per-hour employee for a year is around 63 percent. Employers spend nearly $19,400 on taxes, insurance, benefits, recruiting, and ongoing management over the course of one year.

Also, to hire a 50-person workforce and stay fully staffed, an employer would likely have to hire around 90 workers over the course of a year, the total cost of which could be upward of $603,000.

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