S. Amir Kohan

Retention

Once hired, the best business outcome is for the new hire to stick around for a while.
Depending on the level of the job in your organization’s structure, you can determine
how long it will take for you to reach a “break-even” point for the organization to cover
the cost of recruiting and hiring.

Break-Even Point for New-Hire Retention = Monthly Value of New Hire on the Job ÷ Cost of Recruiting and Hiring

Break-Even Point for New-Hire Retention = $5,000 per month  ÷ $2,000*

Break-Even Point for New-Hire Retention = 2.5 months

*Cost of recruiting and hiring includes things such as search fees, HR recruiter expense
(salary for the time involved), and hiring manager expenses (salary for interviews, paper
reviews, discussions about candidates)


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