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The Cost of Hiring and Training New Employees

In today’s competitive job market, hiring and training new employees can be a costly and time-consuming process for businesses. Finding the right talent and ensuring they are well-equipped to perform their role requires significant investment in terms of time, money, and resources. Many organizations turn to staffing agencies to help streamline the hiring and training process, but how much does it actually cost to hire and train a new employee through a staffing organization?

The Cost of Hiring

The cost of hiring a new employee through a staffing organization typically includes various expenses such as recruitment fees, advertising costs, and background checks. Staffing agencies charge a fee for their recruitment services, which can range from 15% to 50% of the employee’s first year’s salary. This fee covers the costs associated with sourcing, screening, and presenting candidates to the employer. Additionally, businesses may incur advertising costs to promote job openings and attract potential candidates. Background checks, drug testing, and pre-employment assessments are also common expenses associated with hiring through a staffing organization.

The Cost of Training

Once a new employee has been hired, the next phase is training. Training costs can vary depending on the industry and the complexity of the role. For some positions, on-the-job training may be sufficient, while other roles may require formal training programs or certifications. The cost of training includes not only the direct expenses such as training materials, instructor fees, and travel expenses but also the indirect costs associated with the time spent by existing employees and managers in training and mentoring the new hire.

The Total Cost

When considering the total cost of hiring and training a new employee through a staffing organization, businesses must take into account both the direct and indirect expenses. For example, the recruitment fee charged by the staffing agency, the advertising costs, background checks, and the cost of training all contribute to the overall investment in a new employee. Additionally, businesses must also consider the productivity losses that may occur during the onboarding period as the new employee is getting up to speed.

The Benefits of Using a Staffing Organization

While there are costs associated with hiring and training new employees through a staffing organization, there are also significant benefits. Staffing agencies have access to a larger pool of candidates and can often identify top talent more quickly than businesses can on their own. This can result in a more efficient hiring process and ultimately save time and money. Furthermore, staffing agencies can provide expertise in various areas such as employment law, compliance, and best practices, which can help businesses avoid costly mistakes during the hiring and training process.


In conclusion, the cost of hiring and training a new employee through a staffing organization can vary depending on a variety of factors. While there are expenses associated with recruitment fees, advertising costs, background checks, and training, the benefits of using a staffing agency can outweigh these costs. Ultimately, businesses must weigh the costs and benefits of hiring and training through a staffing organization and consider the long-term impact on their bottom line. It is essential for businesses to carefully evaluate their hiring and training needs and seek out a staffing organization that can provide the right solutions to meet their talent acquisition and development requirements.