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Taxes & Benefits: When hiring employers, as a business owner you must cover costs such as health insurance, retirement contributions, payroll taxes, and paid time off (PTO) and these benefits add approximately 29.5% to 38.2% to base salaries.
(Source: U.S. Bureau of Labor Statistics, December 2024)•
Recruitment Costs: Another key point is that hiring takes time and money, from job postings to onboarding, costing thousands. Beyond direct expenses, businesses also deal with productivity losses, managerial time investment, and the risk of a bad hire, all of which can increase costs and delay operations.
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Office Space & Equipment: Similarly, employers must also consider the costs associated with providing office space, supplies, software, internet, and maintenance for new employees.