cost of hiring the employees

in continuation with my earlier topics of retention of employees , today I am telling you why we should focus on employee retention. this can take two to three parts as here we will discuss the cost factor which will cover costing involved in different parts of employee management.
First off all we will discuss the cost of hiring the employees.
here we will not discussed on particular company but we will generalize our discussion on simple example calculations.

Lets take an example of hiring an employee which is simple marketing professional with an experience of 1-2 years only and as per normal salary structure suppose he is getting a salary of only 20000/- per month.

but now to get this person in our company what we need

1. advertisement cost for one month (taking as example if we get the candidate after an advertisement for one month) 100000/-
2. searching cost roughly 5000/- per person
3. calling this candidate for telephonic round 100/-
4. arranging the interview for that candidate and providing him to and fro for interview 1500/-
5. time taken for interviewing for one candidate by a panel of 4 senior professionals is roughly 5 hrs so total time taken is 5*4= 20 hrs
6. cost per hour for these professionals (calculating from the salaries of these seniors) taking roughly as 2000/- per hour and total is 20*2000= 40000/- per employee selection.
7. costing for support staff till joining of the candidate taking as 3000/- which includes stationary, salaries of staff involved and correspondence expenses.
8. after joining comes is induction process which is prior to training and is just introduction which takes one day or two. let us take it one day and costing comes out to be 2500/-
9. then comes is training part duration of which varies from 7 to 30 days depending on the knowledge and skills of the candidates.
10. let us calculate above all for total expenses which are supposed to be incurred tentatively
    total estimated cost = roughly 1.5 lacs INR .

SO THE COSTING FOR HIRING 1-5 CANDIDATES COMES OUT TO BE ROUGHLY 2.5 LACS TAKING ADVERTISEMENT COST AS ONE TIME COST.

SO PER CANDIDATE COST IF 5 CANDIDATES JOIN THE COMPANY AS A RESULT OF ONE INTERVIEW = 2.5 LACS/ 5= 50000/-

now we see that the cost is very high and becomes the main factor for retaining the employees on priority basis.

HERE WE ARE LOOKING FOR YOUR COMMENTS IN FAVOUR OF RETAINING EXISTING EMPLOYEES OR HIRING NEW EMPLOYEES.