The Cost of an Employee in Michigan – Updates for 2014 Recruiting

If you are an employer in and around the Michigan area, you may be wondering what the going rate is for employees in this area currently? With unemployment rates remaining well above pre-recession rates, at 8.4 percent as of the end of 2013, it’s still an employer market. However, some skill sets are getting harder to recruit for in the Michigan job market, mostly due to above average growth in several industry sectors, including transportation, information technology, health care, and finance and retail trades.

Michigan’s Labor Market Looks Promising for 2014 

The Detroit Free Press reports that Michigan added 64,000 jobs in 2013, nearly twice of the previous year. This means that the cost per hire is expected to rise as employees in certain industries become more difficult to source and recruit. To help you get on track with your recruitment efforts in the coming year, here is a rundown of what the US Department of Labor states is a good salary range for new hires.

Costs of Hiring in Michigan – An Overview

In September 2013, the DOL advised that, “Regional Commissioner Stanley W. Suchman noted that hourly employer costs for employee compensation [was] $28.02 in the Midwest”. This is an average cost per hour of employee for all private sectors in the entire Midwestern USA, including Michigan. Keep in mind that these costs not only include the hourly salary for employees, but also their required benefits which can include Social Security and Medicare tax, workers’ compensation claims, and unemployment insurance coverage. Naturally, paid leave and time off, overtime payment, as well as mandatory health care insurance under Obamacare are factored into these figures.

High Demand Skills in Michigan

In Michigan, there are several careers that have a high demand for workers, meaning their hourly rates are higher than other job types. These can include Engineering and Manufacturing careers in Michigan, which are currently paying $18-36 per hour plus benefits. Accounting and Finance jobs particularly in health care and manufacturing industries are paying between $18-35 per hour, depending on experience level. Information Technology professionals are in very high demand in Michigan, with jobs offered at $40-60 per hour on average.

Controlling the Costs of Hiring in Michigan

One way to reduce these costs is to work closely with a staffing agency in Michigan who can attain highly qualified candidates in any market at current industry rates. Staffing agencies also take care of many of the costly aspects of recruitment, such as pre-screening and onboarding new hires, as well as benefit administration. This gives you more room in your HR budget for other Michigan business building initiatives.

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