Answer to Question #242786 in Macroeconomics for kk122

Question

A previously self- employed man with an income of $3500 decided to become an employee of a manufacturing company at a salary of $4000

Answer 1

Cash-strapped businesses often hesitate to start hiring, even when they need workers, due to the actual cost of hiring employee. It's easy to forget that the cost of taking on a new employee means more than just their salary, which can be substantial all by itself. But once you factor in the cost of recruiting, training and much more, the dollars start adding up. In its 2016 human resource management estimated that companies spend an average of 42 days to fill a position and $4,129 per hire. The cost of hiring an employee goes far beyond just paying for their salaries to encompass recruiting, training, benefits and much more