. The cost of supervision of the employee can be calculated using a percentage of the supervisor’s salary based on the projected amount of time the new employee will require from a supervisor. Training costs can also be substantial, consisting of the direct and opportunity costs of other employees who would be involved in training. Equipment such as computers, desks, safety equipment and other technology would also be taken into account.After calculating, reviewing and analyzing the costs and benefits of an employee, several things must still be considered before developing a conclusion. A human resources or management decision maker should compare and analyze the effect this employee would have on your cash flow. Realistic income projections can be compared to the initial and long-term costs of the employee. The fact that the employee may not be fully productive until several months of work must be calculated into the projections. For example, the person may take time to adjust to the position and handle a full workload, or you may not initially have enough work for the person to be working at full capacity. The deciding parties must consider the relative value and determine if the gain would be more from a new employee as opposed to investing the same time, money, and resources in current employees or procedures.The decision to hire a new employee is very important to the company as a whole, as well as, the individual making the decision. A poor choice can reflect the personal abilities and may indicate a decision-making weakness to the person’s boss, colleagues, staff and customers. By making the decision to hire the person, they will be responsible for whether or not that person can do the job well and fit in with other members of the staff. When making the decision to hire a new employee, a company should keep in mind the importance of the task, while being sure to consider the potential gain, projected costs...
