In the context of marginal analysis in hiring, how should a company evaluate the marginal cost of hiring an additional employee in relation to employee retention rates?

When a company considers hiring an additional employee, it needs to think about the marginal cost, which is the extra cost of bringing in that new worker. This cost includes not just the salary but also benefits, training, and any resources the new employee will use. The company should also consider employee retention rates because if many employees leave, it can be expensive to constantly hire and train new ones. For example, if hiring one more employee costs $50,000, but the company has a high turnover rate, it may end up spending much more in the long run due to repeated hiring and training. Therefore, understanding both the immediate costs and the long-term impact of retention is crucial for making a smart hiring decision.