by: Maria Williams* | July 14th, 2026

When a public agency hires a new employee, most of the conversation centers around one number: salary. But from a risk management perspective, salary is only the beginning of the investment.

In the claims and data department, we're constantly looking for trends that help organizations make better decisions. One pattern appears time and again: the true cost of hiring is often underestimated—not because agencies overlook expenses, but because those costs are spread across multiple departments, budgets, and responsibilities.

Human Resources may account for recruitment and onboarding. Finance tracks payroll and benefits. Supervisors absorb training time and reduced productivity. Risk management monitors workers' compensation claims, safety training, and return-to-work efforts.

When each department sees only its own piece of the puzzle, it's easy to underestimate the total investment being made in every new employee.

For public agencies, that can have meaningful consequences. Hiring decisions made without understanding the full organizational cost can strain budgets, reduce flexibility for future staffing, and make employee turnover significantly more expensive than anticipated. Replacing an experienced employee doesn't simply restart the hiring process—it restarts the investment in recruiting, onboarding, training, and developing someone until they're fully productive.

From a claims perspective, new employees can also present unique exposures. Employees who are unfamiliar with equipment, procedures, or agency expectations may be more susceptible to workplace injuries during their first several months on the job. That makes effective onboarding, supervisor involvement, and safety training just as important as recruiting the right candidate.

This is where collaboration between Human Resources and Risk Management becomes invaluable.

Rather than viewing hiring as solely an HR function, agencies benefit when risk managers become part of the conversation early. Together, HR and Risk can identify the direct and indirect costs associated with bringing on a new employee, evaluate where preventable losses may occur, and ensure new hires receive the support they need to work safely and successfully.

Even simple conversations can make a difference:

• Are onboarding and safety training aligned?
• Are supervisors prepared to mentor new employees?
• Have the costs of turnover been factored into workforce planning?
• Are injury trends among newer employees being monitored?

These discussions help agencies move beyond simply filling vacancies toward making informed staffing decisions that reduce long-term risk.

Every agency is different, and there isn't a universal formula for calculating the true cost of a new hire. Position classifications, benefit structures, training requirements, and operational demands all vary. However, understanding that the cost extends well beyond salary is the first step toward making more informed decisions. GSRMA can be a valuable partner in that process.

We can help identify trends in workers' compensation claims, review injury data, provide onboarding and safety resources, and offer guidance that supports both employee success and organizational resilience. Leveraging these resources allows agencies to better understand where hiring investments intersect with operational risk.

When HR, supervisors, finance, and risk management work together, agencies gain a more complete picture of what hiring truly costs—and, more importantly, what it takes to protect that investment.

Because in public service, every hiring decision isn't just about filling a position. It's about building a workforce that is prepared, productive, and positioned to serve the community safely for years to come.

*Resource: ChatGPT, 2026