COST PER HIRE---INSIDE THE "JOBLESS" RECOVERY

Unemployment and why large corporations don't hire unless they are absolutely positive they will keep them. The cost per hire in a corporation of 10,000 to 25,000 is in excess of $15,000 per hire. Hire 150 people and you are out of pocket before you start two and a half million dollars. That is why the smaller companies lead a recovery even though their cost per hire is almost $12,000. Why so much? Regulations, benefits, training costs; benefits alone run 30% of salary added on; then there are the threats of law suits, women are a law suit waiting to happen, all kinds of weird discrimination suits and so on act to stop the hiring process til it is absolutely necessary to hire. That is why the independent contractors have become so common. We may be seeing employment growth through the 193,000 growth in this area for the last jobs report. And WORKERS COMPENSATION costs in a state like California can add $2,000 to the cost of a hire. That is why we may see a "jobless recovery" for a few more months yet.

BTW a small company hiring a low skill worker is out about $1,000; in a high worker comp fee state like California they will be out more.