Mar 25

Four (Not-So) Hidden Costs Of Hiring a New Remote Employee

Hiring the right employees can take your business to the next level. You’ll never know just how far your company can go if you’ve got people with mad skills and extensive experience in your corner.

However, finding -and hiring- these people is easier said than done. Retaining (or replacing) them is even more challenging.

These days, there are lots of platforms where you can post job openings for free. But the whole hiring and onboarding process can actually be costly. When you think about it, the cost of hiring a new employee goes beyond whatever amount goes on their first paycheck.

Let’s take a look:

Recruiting Costs


Finding the best candidate requires time, money, and effort. In fact, data shows that it takes approximately 42 days before a position can be filled.

During this time, the costs can add up. We’re not just talking about any advertising costs for boosting those job ads too. There’s also what you pay recruiter/s who will review the resumes and conduct interviews, background checks, and other pre-employment assessment tests.

Unfortunately, this is an investment without a quick guarantee of return.

Training Costs

Training Costs

Let’s say you already found the right applicant and that you’re already done with the onboarding process.

It still doesn’t end there.

Providing adequate training is crucial to ensuring that new hires can do their jobs well. This is also one of the costliest investments a company can make.

For instance, Training Magazine released data revealing that companies spend an average of US$1,286 a year on training per employee.

Why is this figure so high? This is because it includes the costs of additional hours for training, orientation expenses, as well as compensation for the trainers themselves.

Salaries and Benefits

Salaries and Benefits

Let’s look at the most obvious cost: salary and benefits. Ideally, you should pay your new employee a salary that they can live on. (If you’re hiring a remote worker, this can mean cost savings since the Australian dollar goes farther in countries like the Philippines, where the cost of living is significantly lower.)

Depending on government regulations, you may also need to provide a basic healthcare plan, social security payments, and so on.

Plus, if your industry happens to be prone to risks and accidents, you’ll have to get personal accident plans for your employees, which can be especially costly if you’re just starting out.

Workplace Integration Costs


Prior to the pandemic, workplace integration simply meant providing an ergonomic desk chair, laptop/desktop, and work phones. Some businesses also provide a transportation allowance and perhaps even free lodgings, depending on the nature of the work.

Fortunately, companies that allow people to work from home don’t have to shell out for these anymore. However, you might still need to provide appropriate support from time to time. This could involve a communication/internet allowance, software licenses, and perhaps even some remote work equipment if necessary.


Now, the question is: when will you get a return on all these investments? According to a survey conducted by Harvard Business School, it takes around six months before a new hire fully acclimates and is able to do their job with little to no supervision. By that time, you can expect a new hire to have gotten the hang of things, at least.

Hence, because of the costly process, hiring (and keeping) the right person is the only way to ensure that all the efforts and expenses involved will have been worth it.

The good news is you don’t have to do it on your own.

Remote Staff has been assisting Australian SMEs and entrepreneurs like you with hiring and onboarding remote workers from the Philippines since 2007. For the last fourteen years and counting, we have assisted our clients every step of the way when it comes to scouting, recruiting, and even onboarding the right employees.

So call us today or schedule a call back so we can get started.


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Disclaimer: The above article was written according to the information available as of press time.
All opinions and beliefs expressed herein do not necessarily reflect those of Remote Staff's, its employees, subcontractors, clients, and affiliates.

About The Author

Serena has been working remotely and writing content for the better part of the last decade. To date, she's written for and Mabuhay Magazine, among others, and has churned out more than a thousand articles on everything from The Basics of Stock Market Investing to How to Make Milk Tea-Flavored Taho at home. Hermits, aspiring hermits, and non-hermits with interesting project propositions may email her at

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