The hidden costs of hiring an employee

The hidden costs of hiring an employee

Jun 2, 2022 | Hiring, Human Resources, Recruiting, Salaries

The hidden costs of hiring an employee

In addition to salary, there are many things to consider when you incorporate a new person into the company.

Hidden costs

There are various potentially hefty costs associated with the process of recruiting the right candidate. These include promoting the job listing far and wide, for starters. It’s also important to take into account the time spent by internal recruiters, assistants who help review CVs, the employees conducting interviews, as well as those conducting drug screens, background checks, and other pre-employment assessment tests. Using quality recruitment software is one potential way of expending less time (and therefore money) during this process!

It’s also worth considering that while different types of hires naturally require different processes, even an employee applying for a position at a minimum salary could end up costing your business a significant amount in turnover costs.

The cost of training

Once recruited, new hires don’t tend to be completely and immediately productive. Realistically, it may take several months for them to become accustomed to the new flow. Of course, once a new hire is behind the wheel, companies also need to do all they can to facilitate the transition to healthy productivity. How? By providing employee training, of course.

Although proper training is crucial, it turns out that it’s also one of the steepest investments you’re apt to make. Your typical business might lose anywhere between 1% and 2.5% of their total revenue in the time required to get a new employee up to speed. In 2019, companies spent an average of $1286 a year on training—per employee. And new hires devoted an average of 42.1 hours to undergoing this training. To truly get a handle on training costs, it’s important to consider all the costs associated with structured training, materials, as well as the time cost of managers and coworkers.

The cost of workplace integration

Yet another set of costs that shouldn’t be glazed over is workplace integration. More and more these days, businesses are tuning in to the needs of their employees—beyond simply providing a decent enough chair and desk. Effective workplace integration might extend to carving out meaningful space for a new employee within the company, or on the production floor.

Helping them fit in and get along with other staff is also an essential aspect of integration. There are also a number of material needs that may need to be met as well. These may include customized employee software, a company cell phone, travel funds, a company vehicle, and any special equipment required to get the job done—or facilitate it.

Of course, in some businesses, these considerations are a lot more integral than in others. An IT employee working in telecommunications, for instance, is more likely to require specialized equipment than someone whose job takes place 100% in-office, or in an industry that’s more standardized production-wise. Additionally, in the age of Covid-19, it’s also worth considering the cost of potential safety adaptations required in workplaces.

did you know these hidden costs?

As you can see, hiring an employee has many costs. Do you believe us if we tell you that you can hire employees anywhere in the world without having to pay these costs? Contact us we can help you!

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Why are business expanding into Latin America?

Why are business expanding into Latin America?

Dec 30, 2021 | Employer Of Record, Latin America, Salaries, Start up

Why are business expanding into Latin America?

Let’s have a look how you can incorporate your company to this wave of expansion

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There are many factors driving this shift to Latin American expansions. One often-cited explanation is the so-called “U.S.-Factor.” Many businesses are moving to Latin America due to:

  • Favorable production and operational costs
  • Fantastic transport links to and from the United States with manageable flight times
  • Huge expanses of coast which equates to massive shipping capacities
  • Similar time zones to the United States
  • Progress in terms of infrastructural indices found in Latin America. The countries are modernizing at an impressive rate, and are more accommodating than ever for key considerations

However, the development that has arguably had the largest impact on convincing companies to move operations to and establish a local entity in Latin America, has been the emergence of startup incubators and accelerator projects. Both private and government-backed projects are common and have facilitated the entry into the Latin market to great success.

 

What Is a Startup Incubator and Is It the same as an Accelerator?

Startup incubators and accelerators are relatively modern concepts, but both nurture innovation. However, both terms are bandied about quite frivolously, and the subtle nuances of each institution are often lost.

Both institutions serve to support the development of young companies, but the difference is where and how the aid is distributed. An accelerator is perhaps simpler to understand, as it does exactly what it says on the tin; an accelerator provides support, consultancy, and crucial cash flow to companies to hasten the rate at which they grow. Candidates normally enter an application process, which will see them selected for the program. With this support and advice, companies have the support they need to pursue (and reach) their goals in a significantly shorter amount of time than had they not been in the program.

An incubator, on the other hand, has the same goal, but ultimately approaches the challenge from a slightly different standpoint. While an accelerator will take an already-existing young business and try to take it to ‘the next level,’ incubators look to offer direction, management, and financial support for a concept and aim to turn it into a functional, profitable business. The slightly more maternal nature of an incubator means that there is no time frame and is perfect for projects of smaller scale.

Is your business ready to implement a global expansion strategy?

We can help you to hire employees in Latin America and anywhere in the world. Today, thanks to teleworking this is possible. You don’t have to know all the labor laws or be an expert. Leave that in our hands. Contact Us

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Why hire remote employees in Mexico?

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Employer of Record in Argentina

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Argentina is a viable option for companies looking to hire remote teams. EOR ROOTS simplifies the process of Employment in this country. Want to know more about us? Let´s get started!

5 tips to find the best jobs for you

5 tips to find the best jobs for you

Sep 24, 2021 | EOR, Human Resources, Job, Job search, Salaries, Tips

5 tips to find the best jobs for you

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Guidance on how to find the work you will love.

Identifying how your personal ambitions, goals and needs align with a particular job opportunity is no easy task. But outlining these factors is essential when searching for a job that’s the right fit for you. Here are some tips to help you identify if a job is a good fit for you:

1. Decide what you want in a job

At the start of your job search, spend some time reflecting on what has prompted you to look. Are you interested in doing the same job for a different employer? Do you want to change career paths? Are you entering the job market for the first time? Are you returning from an employment gap?

 

2. Research job titles and descriptions

You can review different job titles to get a better understanding of what a certain role entails and what skills may be required. The Bureau of Labor Statistics also provides up-to-date information on a comprehensive set of occupations.

 

3. Review salary trends

Salary trends is a tool that lets you see the trends in compensation for specific jobs in different locations. Enter a job title and you’ll see the salary range in various cities and with different employers.

 

4. Identify your must-haves

Another method of finding the jobs that are right for you is to identify your non-negotiables and areas where you may be more flexible.

5. Experiment with different job searches

The best way to get a feel for the jobs that are available to you is to try out different search terms. As you search, you’ll get better at recognizing the jobs that feel right and those that don’t.

If you’re not sure where to begin, it’s a good practice to start with broad search terms and steadily narrow it down.

Finding the ideal job is not easy. Many times, you can find it in another country. Did you know that you can be hired and hire people without being in the same physical location in a simple way? Contact Our Advisors 

2021’s fastest-growing job

2021’s fastest-growing job

Jul 16, 2021 | Human Resources, EOR, Hiring, Job, Salaries, Teleworking

2021’s fastest-growing job

Hiring for these jobs is on the rise in 2021
LinkedIn announced new insights that shed light on what’s next for this new year.

These are the top 5 Jobs on the Rise for this year.

 

1. Professionals on the frontlines of e-commerce

As many sheltered in place this year, retailers and logistics companies onboarded thousands of e-commerce workers to help get products from the store into the hands of customers. Hiring for these roles grew 73% year-over-year — and that demand continues with over 400,000 open jobs right now.

 

2. Loan and mortgage experts

The combination of historically low interest rates and the rollout of the Paycheck Protection Program loans has kept loan experts busy this year — and sent many companies on the hunt for even more. Hiring for these jobs in 2020 increased nearly 59% from 2019. For people looking to work from home, roughly a quarter of loan officer job postings mention remote work options.

 

3. Health care supporting staff

The coronavirus pandemic caused a sudden and sustained need for doctors and nurses, but it also created the same demand for the people who support health care professionals. These people help usher patients through the health care system, keep records in order for doctors and much more. Since 2019, hiring for these positions has increased more than 34%. (25 titles)

 

4. Business development and sales professionals

Businesses were tasked with quickly adapting to an uncertain world and economy. While some jobs were lost, others that could help bottom lines and help businesses navigate through the pandemic were added. Hiring for these roles grew more than 45% between 2020 and 2019.

 

5. Experts in workplace diversity

Protests sparked by the police-involved shootings of George Floyd and Breonna Taylor caused organizations around the world to reckon with systemic racism and a lack of diversity in positions of power. Companies — large and small — turned to diversity experts who could help them bring new voices into their organizations. Hiring for these roles increased more than 90% since 2019.

Your company is looking to add some of these professionals, but the way to hire an employee is being complicated? We have the solution for you! Contact Us

5 ways to become a company people want to work for

5 ways to become a company people want to work for

Jul 13, 2021 | Employer Of Record, Human Resources, Job, Salaries

5 ways to become a company people want to work for

Hiring for these jobs is on the rise in 2021
Creating a strong culture is key to becoming a world-class workplace. 

Here are five ways in which your company can be one in which everyone wants to work: 
  

1. Invest in your employee’s development and well-being.

Don’t just say that you care about your employees; prove it by investing in them, and today that also includes investing in their mental health. Recent events have proved to be a traumatic time for most, including those who have been indirectly affected by job loss, health issues, or civil unrest.
Professional development for employees is just as important now as it has always been but doubling down on resources to help your employees care for themselves and their families —as well as being sensitive to those needs— is key. Your people will notice these investments and appreciate them.

2. Use hiring or re-onboarding as an opportunity to share your culture.

Whether you’re planning to welcome furloughed workers back or are fortunate enough to ramp up new recruitment again, impressions matter, so make sure that these employees hear the right messages about your culture from the outset. Consider scheduling virtual meetings to personally connect with each new hire and discuss the company culture. This can have a positive and lasting impact.

3. Prioritize companywide diversity and inclusion efforts.

Job seekers consider workplace diversity an important factor when considering employment opportunities. Consider diversity and inclusion training to not only foster greater understanding and teamwork, but to also ultimately drive greater innovation, creativity, and productivity.

Communicate clearly to employees about how your diversity and inclusion efforts play in your organization’s core values and its approach to work. Employees are laser-focused on what their leaders are saying and doing. You have their attention, so now is the time to recommit establishing an inclusive workplace culture as a key part of your company.

4. Create programs that reward and recognize the right behaviors.

Think about how you reward employees and whether those rewards are consistent with your cultural values. If they’re not consistent, change them. If you reward your employees on the basis of sales goals, this implies that your culture puts greater value on “how much” than on “how.” If that’s not the message you’re trying to send, you may need to adjust your compensation structure.

These goals can extend beyond key performance indicators and help assess how involved an employee is in contributing to a company’s culture, whether that means spearheading an internal committee or being involved in organizing team activities.

5. Highlight workplace safety and security.

These efforts need to be more front-and-center because of Covid-19. Once we start returning to work, feeling safe and secure in an office or field environment is going to make all the difference for employees. Only then will they be able to not just perform well but also take advantage of a company’s culture, feel good about it, and actively contribute to make it stronger.

Engaging your employees is more important now than it’s ever been before. Using the above tools to establish a strong and inclusive workplace culture can make all the difference.

Is your company one that meets these qualities? I might be a good time to join new employees. Do you want to know how? Contact Us

Tips for onboarding new employees

Tips for onboarding new employees

Jun 9, 2021 | Employer Of Record, EOR, Featured, Human Resources, Job, Job search, Recruiters, Recruiting, Salaries, Tips, Why choose us

Tips for onboarding new employees

More than half of UK firms plan to hire new staff
A simple process for Businesses that have international expansion.

The laborious work of creating a new overseas entity for your business can be difficult, so why not make it easier with some local experts? You need to account for banking, insurance, tax, compliance and more, ensuring the local infrastructure is set-up and sufficient to employ workers. This can often turn people off from expanding overseas, but it shouldn’t.

The employer of record service provides an infrastructure that negates the needs to worry about most of these tasks. They provide a business with the opportunity to hire an employee in global markets compliantly, without the need for an entity or local employee onboarding process.

The following are just some of the benefits of an EOR:

 

Time-saving

An established EOR is the quickest way to grow the global workforce of the client company, making it easier to find the perfect international employees for your team. A process that can often take months at the very least can be performed in a fraction of time, thanks to the EOR’s pre-established entity and on-call network.

 

Dollar saving

By removing the regulatory need for a local subsidiary, your business can save thousands of dollars. There is no need to spend money on human resources, finance, or legal functions as it is all included in the set EOR template.

 

Satisfying compliance needs

Rather than dedicating internal time to satisfying compliant international labour laws and risking the severe consequences if they are not accounted for, an EOR takes this task off your hands and gives you the peace of mind in knowing it is being handled correctly. The EOR provides a compliant solution for international employment regulations and removes your risk of fines, penalties, and business sanctions for non-compliance of international labour laws and practices.

 

Shifting the risk

Continuing on from the last point, a range of other risk factors that come with hiring international employees, and are often made more difficult when working in a sector that you have no experience in, are shouldered by the employer of record.

Above all, an employer of record frees up your time and energy to focus on core business functions while achieving global expansion in a much quicker timeframe. The EOR will take care of human resources and payroll processing for the new employees, while your management team are responsible for managing their day-to-day work. Want to know more about? Contact Us