If you are involved in global talent management, you must ask yourself this question even if you don’t always want to admit it: “Where is it the least costly to hire, employ, and fire?”

We were pleased to see the World Bank report: “Doing business in 2006 – Creating Jobs”.

So here is the answer on the table below where the hiring cost indicator measures all social security payments (including retirement fund; sickness, maternity, and health insurance; workplace injury; family allowance; and other obligatory contributions) and payroll taxes associated with hiring an employee.

Hong Kong has an average cost of hiring at 5% of salary, US is at 8%, UK 9%, Portugal 24%, France 42%, Belgium 55%, Australia 21%.

What about the cost of firing?

The firing cost indicator measures the cost of advance notice requirements, severance payments, and penalties due when dismissing a redundant worker, expressed in weekly wages.

Hong Kong firing cost is 13 weeks salary, UK at 34 weeks, Portugal 98 weeks, France 32 weeks, and Belgium 16 weeks.