How to Measure ROI of Your New Hire

Hiring someone new is no small expense for a company. The cost of recruiting, interviewing, vetting, and training a new hire can be as much as the employee’s annual salary or more. Being able to gauge whether or not the new team member is paying off is a valuable metric to have. Here is how to measure the ROI of your new hire. Have a Clear Role in Mind Before you begin to try and calculate the ROI of your new team member, you should have a clear idea of what their role is and what they should be accomplishing. Without clearly defining the role, responsibilities, and expectations, you won’t be able to calculate a benefit to bringing them on board. Additionally, employees who take on jobs where their roles are not clearly defined tend to underperform, making them a bad new hire. This can also hurt the morale of your other employees ......