The Real Cost of Hiring (It's Not Just Salary Anymore)

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Hiring feels like growth. More people. More capacity. More momentum.

But here’s what most business owners underestimate: The salary is just the starting point. By the time you factor in everything else, that “$70,000 hire” can quietly become a $90,000—or even $100,000—decision. And if you don’t plan for it? Hiring can slow your business down instead of moving it forward.


Why Hiring Feels Simpler Than It Actually Is

On paper, hiring looks straightforward. You need help. You set a salary. You make the offer. But the real cost doesn’t show up in the offer letter. It shows up in everything that comes after.


The True Cost Breakdown (What Most People Miss)

Salary is only one piece of the equation.

Here’s what actually gets added on:


1. Payroll Taxes

Employers are responsible for their share of:

  • Social Security and Medicare
  • Federal and state unemployment taxes

That alone can add 7–10%+ on top of base salary.


2. Benefits (Even Basic Ones Add Up)

Depending on your setup, this may include:

  • Health insurance contributions
  • Retirement plans
  • Paid time off

Even modest benefits packages can significantly increase your total cost per employee.


3. Software, Tools, and Equipment

Every new hire needs access to:

  • Software subscriptions
  • Systems and platforms
  • Equipment or workspace

Individually small. Collectively meaningful.


4. Management and Training Time

This is the most overlooked cost.

New hires require:

  • Onboarding
  • Training
  • Ongoing management

Which means someone on your team is spending time not doing their core work. That’s a real cost—even if it doesn’t show up on a payroll report.


Full-Time vs. Contractor: Not Always an Obvious Choice

Hiring full-time isn’t always the best first move. In many cases, a contractor or fractional role can:

  • Reduce upfront costs
  • Eliminate benefit obligations
  • Provide specialized expertise
  • Give you flexibility as you grow


This is why more businesses are turning to:

  • Fractional CFOs
  • Outsourced marketing teams
  • Contract-based specialists

It’s not about avoiding hiring. It’s about hiring intentionally.


When Hiring Actually Hurts Growth

It sounds counterintuitive—but hiring too early can create pressure instead of relief. Here’s how it happens:


  • Revenue isn’t consistent yet
  • Cash flow tightens
  • Fixed payroll costs increase
  • You feel pressure to “feed” the hire


Instead of freeing you up… It adds stress to every decision. Growth doesn’t just come from adding people. It comes from adding people at the right time.


A Smarter Approach to Hiring Decisions

Before you make your next hire, ask:

  • Is this role tied directly to revenue or efficiency?
  • Can this function be outsourced first?
  • Do we have consistent cash flow to support this long-term?
  • What is the fully loaded cost—not just the salary?


Because clarity here protects you later.


What Strong Businesses Do Differently

They don’t just hire when they feel busy. They hire when the numbers support it. They:

  • Forecast the full cost
  • Understand the ROI of the role
  • Use flexible resources when needed
  • Scale their team strategically—not reactively

That’s what keeps growth sustainable.


Final Thought

Hiring is one of the biggest investments you’ll make in your business.

Done right, it accelerates growth.

Done too early—or without a full picture—it can slow everything down.

The difference isn’t instinct.

It’s clarity.

Before your next hire, run the numbers—not just the salary.


Contact Steven Brewer & Company CPAs today to evaluate the true cost of hiring, explore smarter staffing options, and make confident decisions that support long-term growth.

EPLI- What every growing business should know! Part 3

July 9, 2026
What EPLI Is Not Employment Practices Liability Insurance is not the same as general liability insurance. General liability usually focuses on third-party bodily injury, property damage, and certain personal injury claims. For example, it may apply if a customer slips and falls at your office. EPLI is different. It focuses on workplace claims. Employment Practices Liability Insurance is also not the same as workers' compensation. Workers' compensation helps cover employees who are injured or become ill because of their work. EPLI helps with certain claims about how employees or applicants were treated. That distinction matters. Many owners assume their business insurance will cover an employee lawsuit. It may not. A claim involving wrongful termination, discrimination, harassment, or retaliation may fall outside general liability or workers' compensation. EPLI is designed to help fill that gap. EPLI also has limits. The Insurance Information Institute notes that EPLI policies may reimburse companies for defense costs, settlements, and judgments. But they generally do not cover punitive damages or civil or criminal fines. [1] Common exclusions may include: Criminal acts Intentional wrongdoing Bodily injury Property damage Workers' compensation claims Certain wage and hour claims Claims known before the policy began Some contract disputes Wage and hour claims deserve extra attention. Some policies exclude them. Others may offer limited defense coverage or an endorsement. The best question is not, "Do we have EPLI?"  The better question is, "What does our Employment Practices Liability Insurance actually cover?"

EPLI- What every growing business should know! Part 2

July 9, 2026
What Employment Practices Liability Insurance Covers Employment Practices Liability Insurance is built around the employment relationship. It may help cover legal defense costs, settlements, or judgments tied to covered workplace claims. A policy may respond to claims involving: Wrongful termination Discrimination Sexual harassment Retaliation Failure to hire Failure to promote Wrongful discipline Negligent evaluation Employment-related defamation Invasion of privacy The International Risk Management Institute identifies wrongful termination, discrimination, sexual harassment, and retaliation as common EPLI claim types. It also notes that policies may cover other employment-related conduct, such as defamation, invasion of privacy, failure to promote, and negligent evaluation. [3] Here is a simple example. An employee is fired after repeated performance issues. The owner knows the decision was based on the work. But the former employee claims the firing was discriminatory or retaliatory. Even if the business did nothing wrong, it may still need to respond. That could mean attorney fees, agency filings, a demand letter, or a lawsuit. That is one of the most important parts of EPLI. A claim does not have to be successful to be expensive. IRMI notes that EPLI policies contain shrinking limits provisions. That means defense costs, which are often a substantial part of a claim, reduce the policy's available limits. [3] Some EPLI policies also cover claims from job applicants. This matters if someone says they were not hired because of age, disability, pregnancy, race, gender, religion, or another protected category.  Some policies include third-party coverage too. This may help if a customer, client, or vendor claims harassment or discrimination by someone at the business. Not every policy includes it, so owners should ask.

EPLI- What every growing business should know! Part 1

July 6, 2026
Employment Practices Liability Insurance: What Growing Businesses Should Know Hiring employees is a major step for a small business. It means more help, more capacity, and more room to grow. It also means more responsibility. Most owners plan for payroll, taxes, workers' compensation, and training when they hire. Those costs are easy to see. The harder risk to spot is the one tied to employment decisions. Every business with employees makes decisions about: Hiring Pay Schedules Promotions Discipline Performance reviews Workplace complaints Termination Any of those decisions can lead to a claim. That is where Employment Practices Liability Insurance, often called EPLI, becomes important. Employment Practices Liability Insurance helps protect a business from certain claims made by employees, former employees, or job applicants. These claims may include wrongful termination, discrimination, harassment, retaliation, failure to hire, or failure to promote. In plain English, EPLI helps protect your business when someone says they were treated unfairly at work. This is not only a big-company issue. Small businesses can face employment-related claims too. In fact, they may be less prepared because they often do not have a full HR team, formal records, or consistent employment practices. The Insurance Information Institute explains that Employment Practices Liability Insurance protects employers against claims that workers' legal rights were violated. Those claims can include harassment, discrimination, wrongful termination, failure to hire or promote, wrongful discipline, and negligent evaluation. [1] Why EPLI Belongs in the Small Business Conversation Small businesses often feel personal. Owners know their teams. Managers solve problems quickly. Conversations happen in real time. That can be a strength. It can also create risk. A business owner may believe a decision was fair. An employee may see it differently. A missed promotion may feel like discrimination. A termination may feel like retaliation. A casual comment from a manager may be viewed as harassment. Employment Practices Liability Insurance does not mean a business has done something wrong. It means the business understands that workplace claims can happen, even when leaders are trying to make fair decisions. Small businesses may also have weaker documentation. Performance conversations may happen in person but never get written down. Hiring decisions may not follow the same process each time. Terminations may happen quickly, without a clear paper trail. That can make a claim harder to defend.  The Equal Employment Opportunity Commission reported that it secured $660 million for 17,680 victims of employment discrimination in fiscal year 2025. For a small business, even one claim can create real financial strain.