Overview
Marginal analysis in hiring is a crucial tool for businesses to evaluate the additional costs and benefits of bringing on new employees. By understanding the concepts of marginal cost and marginal benefit, companies can make informed decisions that optimize their workforce and resources. This analys...
Key Terms
Example: If hiring one more employee costs $50,000, that is the marginal cost.
Example: If the new employee generates $70,000 in revenue, that is the marginal benefit.
Example: Hiring 5 employees when the marginal benefit equals marginal cost.
Example: Choosing to hire based on a cost-benefit analysis.
Example: Analyzing salaries, benefits, and training costs before hiring.
Example: Assessing the revenue generated by a new hire.
Related Topics
Cost-Benefit Analysis
A systematic approach to estimating the strengths and weaknesses of alternatives.
intermediateHuman Resource Management
The strategic approach to managing an organization's workforce.
intermediateEconomic Decision-Making
The process of making choices based on economic principles and data.
advancedKey Concepts
marginal costmarginal benefitoptimal hiringdecision-making