Your 2¢ Worth and the Cost to Mint an Employee

Recently the cost of creating a penny rose to $.017. That’s right—almost two cents spent for every one cent minted. Increased prices of metals, processing, labor, and transportation costs are to blame for the penny’s pricey journey upward.

Interestingly, the U.S. Mint is one of the few government agencies that traditionally makes a profit. But added penny and nickel expenses are cutting into the Mint’s profitability. The Federal Reserve, which distributes the coins, pays the Mint face value for each.

In business, HR departments know that the cost of developing and replacing an employee is much more than the face value. Consider your production costs to “mint” and mold a new employee. Little things that cost more than you expect negatively affect your bottom line.

Think of your time and costs processing a new hire, ordering name plates, sending e-mails, then training and developing—not to mention all the interviewing, and sifting through the rubble of Mt. Résumé.

A best–of–breed HRIS application, like Spectrum’s iVantage^®, offers business–strategic tools to help you monitor your true costs of hiring, training, and retaining employees. iVantage also allows you to set goals for employee growth, track skills, qualifications, and competencies, and easily update the system as needed.

In today’s competitive business world, everyone wants to keep costs down and stabilize their workforce. If you’re going to put two cents in, make sure you get that much back in value…and then some.

To learn more about how iVantage can increase your employee ROI, please call Spectrum at 800.477.3287.