Question

Problem: You are a hiring manager who is expanding your company's staff with hiring new safety professionals. There wil be 2 different factions of this staff, safety coordinator and safety manager. What will be some annual reoccurring costs, initial costs, or any future costs that will be anticipated due to this expansion?

Answer 1

Due to the expansion of the security staff the company will have to incur some additional costs which may be initial , recurring or futuristic in nature. The need to incur this cost will arise due to the additional staff in the company after the expansion has been carried by the HR manager. The anticipated costs can be explained as-:

A- The initial costs that will be incurred can be called as the cost of training. The new recruited security staff would have to be trained in order to teach them the manner of working in the company and how different operations are carried out and so that their efficiency increases. Costs may also be incurred in the selection process, giving advertisement for vacancies etc.

B - The recurring costs will also increase. More fund has to be allocated now for the salaries, employee benefits, overtime, and the other overheads. These costs have to be incurred again and again.

C - The future costs will include the various funds such as gratuity, provident fund etc which has to be paid in the future.

With the addition in the staff of the company all these costs will increase and more funds have to be separated to meet up the employee related costs. These costs are to be anticipated and provisions should also be made to avoid future losses.