employee can be calculated using apercentage of the supervisor’s salary based on the projected amount of time the newemployee will require from a supervisor. Training costs can also be substantial, consistingof 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 alsobe taken into account. After calculating, reviewing and analyzing the costs and benefits ofan employee, several things must still be considered before developing a conclusion. Ahuman resources or management decision maker should compare and analyze the effectthis employee would have on your cash flow. Realistic income projections can becompared to the initial and long-term costs of the employee. The fact that the employeemay not be fully productive until several months of work must be calculated into theprojections. For example, the person may take time to adjust to the position and handle afull workload, or you may not initially have enough work for the person to be working atfull capacity. The deciding parties must consider the relative value and determine if thegain 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 isvery 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-makingweakness to the person’s boss, colleagues, staff and customers. By making the decision tohire the person, they will be responsible for whether or not that person can do the job welland fit in with other members of the staff. When making the decision to hire a newemployee, a company should keep in mind the importance of the task, while being sure toconsider the potential gain, projected costs, and advantages of the new employeecompared to your other choic...
