Hiring an IT professional in the US can be a challenging and expensive process. According to the Computing Technology Industry Association (CompTIA), the median annual wage for professionals in the IT industry in the US is $120,730. However, this figure can vary depending on the location. For example, the median annual wage in Washington State can reach as high as $151,9601.
But the salary is not the only cost involved in hiring an IT professional. There are also other costs such as benefits, recruitment, training, and onboarding that need to be considered. In this blog post, we will explore some of these costs and how they affect the total cost per hire for an IT professional in the US.
Benefits are the non-wage compensation that employers provide to their employees, such as health insurance, retirement plans, paid leave, etc. Benefits are important for attracting and retaining talent, as well as ensuring employee satisfaction and productivity.
According to the Bureau of Labor Statistics, employer costs for benefits represent an average of 29.5% of the total compensation package. However, these costs can vary by region and may rise to as high as 31.2% in certain parts of the country.
For example, if an IT professional earns $120,730 per year, their benefits could cost an employer anywhere from $35,615 to $37,668 per year.
Recruitment is the process of finding and hiring qualified candidates for a job opening. Recruitment costs include various expenses such as job board fees, applicant tracking system fees, internal HR costs, assessment costs, and interview process expenses.
According to a study by the Society for Human Resource Management (SHRM), the average cost per hire in the US is $4,129. However, this cost can vary depending on the industry, company size, and level of the role being filled.
For example, hiring an executive can cost up to $14,936, while hiring a software developer can cost up to $7,645.
Training is the process of providing employees with the knowledge and skills they need to perform their job effectively. Training costs include expenses such as materials, instructors, facilities, travel, etc.
According to a study by Training Magazine, the average training expenditure per employee in the US is $1,286. However, this cost can vary depending on the company size and industry.
For example, small companies (with 100 to 999 employees) spend an average of $1,105 per employee on training, while IT companies spend an average of $1,075 per employee on training.
Onboarding is the process of integrating new employees into the organization and culture. Onboarding costs include expenses such as orientation programs, mentoring, feedback, and performance evaluation.
According to a study by Glassdoor, the average time to onboard a new employee in the US is 24 days. However, this time can vary depending on the complexity and level of the role.
For example, onboarding an IT professional can take up to 45 days, while onboarding an executive can take up to 90 days.
According to a study by BambooHR, the average cost of onboarding a new employee in the US is $4,000. However, this cost can vary depending on the company size and industry.
For example, onboarding an IT professional can cost up to $6,000, while onboarding an executive can cost up to $10,000.
As you can see, hiring an IT professional in the US involves more than just paying their salary. There are also other costs such as benefits, recruitment, training, and onboarding that need to be considered.
According to our calculations, based on the average figures from various sources, the total cost per hire for an IT professional in the US can range from $161,479 to $209,353 per year.
This means that hiring an IT professional in the US can be a significant investment for any company. Therefore, it is important to plan ahead and budget accordingly for these costs.
Alternatively, you might want to consider outsourcing your IT needs to a reliable and cost-effective partner. Outsourcing can help you save time and money on hiring, as well as access a larger and more diverse talent pool.
If you are interested in outsourcing your IT needs, contact us today and we will help you find the best solution for your business.