It costs a lot to hire a new employee. While the amount varies, according to Recruiter Box, hiring a new employee can cost up to $5,000 and Glassdoor guesstimates the cost at about $4,000. Investopedia says that even an $8/hour employee can end up costing a company around $3,500 in turnover costs, both direct and indirect.
Why so much? Even if you don’t use a recruiting company, internal HR costs can be shockingly high when you consider expenses like HR manager and employee salaries, the price of online ads and career fairs, yearly job board fees, background checks, onboarding and training, maintaining HR documents, building and maintaining career pages on your website…and that’s not even accounting for hidden costs, including time and money.
Forbes says that 57% of businesses are saving costs by using free agent talent and gig workers. In fact, forty-three percent of companies using gig workers are saving at least 20% in labor costs alone. Other areas for savings include less downtime for machinery when 24-hour shifts are worked and extended operating hours.
Other exciting benefits of using gig workers comes from additional cost savings such as reduced costs for payroll, overtime benefits, workers’ comp, vacation days, retirement security, or health insurance.
It pays to invest in the gig economy. Gig workers supply endless opportunities for businesses. Contact us today to learn how to get started!