As a business leader, you know how important it is to have the right people working for you. For many, that translates to focusing on hiring workers who have lots of experience, which usually equates to hiring older workers. Did you know that there are financial benefits to hiring younger workers though?
Employee starting wages have jumped dramatically over the last few years. That’s putting a lot of pressure on businesses to increase pay so they can stay competitive as employers. Pay is often tied to experience, however.
Since younger workers tend to have less experience than older workers, it makes more sense to start them at a lower wage. That can go a long way towards getting your labor costs under control.
Lower Healthcare Costs
There’s more that goes into paying employees than just their wages. Benefits cost money too, especially those like healthcare, which are more commonly expected by employees. This is another area where hiring a younger worker could pay off. Younger workers may have lower healthcare costs, which can save you money. Additionally, many workers under 26 stay on their parents’ healthcare plan.
They may not need employer-provided healthcare, which can save you money. Additionally, younger people tend to be healthier. That leads to fewer sick days taken and better productivity, which also benefits your business financially.
Loyalty Saves Money
If you can figure out how to retain the younger workers you hire, you can save a lot of money. Employee turnover is costly. While you’ll need to invest money in employee retention, it’s less than what you’d have to invest in finding, recruiting, and training new talent. To that end, hiring younger workers and earning their loyalty can save your business a lot. As an added benefit, you have a better pool of employees from whom you can pull for promotion opportunities. As long as what you’re paying for the promotion is at least up to par with industry and position standards for your area, you can avoid having to pay someone from outside the company a lot more to do the same job.
If you’re concerned about controlling your labor costs and want the best value for your money, consider hiring younger workers. Of course, you should never discriminate based on age, and ultimately the best employees are those who can earn their place in your company based on merit. Still, considering the financial benefits of hiring younger workers, adding a few younger employees to your mix could be worthwhile.
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