Once you employ someone, you need to consider a whole range of Human Resource issues. Most of these will also have financial implications, whether that be the cost of your time or someone else’s in terms of becoming aware of everything you need to, to the explicit cost of running or oursourcing an HR function.
The most obvious HR cost is the cost of recruiting someone. There will be the obvious costs of advertising in newspapers or on the internet. Maybe you will need to hire a recruitment consultant; agencies normally charge a percentage of the new employee’s gross salary. (These may be scaled down or refunded if the employee leaves within a short timeframe).
However, there are also ongoing costs arising from the need to be aware of employment law and other employment issues, such as grievances and disciplinaries, maternity rights, sickness and absence management and equal opportunities, to name a few.