Hiring an employee costs a significant amount of money. The salary and benefits, employment taxes, and time needed to onboard and train quickly add up. This is why knowing your return on investment (ROI) for hiring an employee is important. You must be able to clearly define what you want your new hire to do and how you will measure their success in the role. This helps you quantify the benefit of adding a member to your team.
Follow these guidelines to measure the ROI of your new agricultural employee.
Define the Role
Clarify the duties, responsibilities, and expectations you have for the new hire. This shows a specific need for them to join your team. Because they have a defined purpose, the new hire will be more inclined to perform to the best of their ability. These aspects help increase your ROI.
Determine a Measurement for Success
You may want to use a cost-benefit analysis to determine whether the money invested in a new employee would be worth the value they can provide your company. The ability to show that the benefits outweigh the costs helps justify your reasons for hiring.
Calculate the Expenses
Write down the obvious costs and hidden costs involved with your new hire. Monetary examples include salary, benefits, onboarding, and training. Time-based examples include writing the job description, posting on the appropriate platforms, interviewing candidates, and helping the employee reach the desired productivity level. Considering all short- and long-term expenses helps you more effectively complete your cost-benefit analysis.
Consider the Benefits
Make a list of the value your new hire can provide. For instance, they may take on some of the work that has your team consistently overloaded. Or, the new employee may have a skill your team needs to take on more projects and increase the bottom line. This information shows the direct and indirect benefits you can gain by bringing aboard a new hire. It also helps you complete your cost-benefit analysis.
Add Up Your Costs and Benefits
If your projected benefits are higher than your projected costs, hiring a new employee should be in your best interest. Keep in mind that the employee’s work ethic, compatibility with colleagues and coworkers, and other personal traits make a difference in the value they give your organization.
Work with an Experienced Staffing Firm
Save time and money on hiring by working with Morris Bixby Group. Contact us today.