Retention

Once hired, the best business outcome is for the new hire to stick around for a while.
Depending on the level of the job in your organization’s structure, you can determine
how long it will take for you to reach a “break-even” point for the organization to cover
the cost of recruiting and hiring.

Break-Even Point for New-Hire Retention = Monthly Value of New Hire on the Job ÷ Cost of Recruiting and Hiring

Break-Even Point for New-Hire Retention = $5,000 per month  ÷ $2,000*

Break-Even Point for New-Hire Retention = 2.5 months

*Cost of recruiting and hiring includes things such as search fees, HR recruiter expense
(salary for the time involved), and hiring manager expenses (salary for interviews, paper
reviews, discussions about candidates)

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Sharam Kohan
Sharam Kohan

Sharam Kohan is an organizational leadership professional with experience spanning employment law, human resources, and public service. He is currently an LL.M. degree candidate at UC Berkeley School of Law and previously served on Alameda County’s Human Relations Commission, advancing equity-focused community initiatives. He holds an Employment Law specialization from Temple University School of Law and is SHRM-certified.

Sharam is also a writer whose work explores the intersection of law and philosophy, including Judgment, a Priori Itself and Sartre’s Conception of Freedom. He comments on organizational dynamics and social issues, and supports Bay Area community organizations through philanthropy and volunteer service.

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