Hiring Costs You Should Know

Recruiters often find themselves justifying their cost-for-hire. A good idea is to keep a tracker of all hiring costs, here is a basic checklist!

Advertising and Branding:

The cost of employer image building and advertising the jobs.

Recruitment Agency Costs:

They charge relatively higher costs, typically between 12-20% of the salary offered to a candidate.

Job Sites, Job Forums and Social Media:

Costs for basic and premium memberships.

Job Fairs:

It includes participation fee, kiosk fee and accompanying branding fee. Salary and Benefits: A direct cost of hire.

Referral Program:

The monetary benefits that are passed on to the employees on successful referral conversions.

Applicant Tracking System (ATS):

This may have a monthly or annual subscription fee, apart from the setting up cost.

Relocation:

After an offer roll-out, the employee may need to be relocated with/without family which includes relocation benefits, travel & visa arrangements and brokerage assistance.

Cost of Time and Efforts:

The process of hiring involves many stakeholders – right from HR team to top management. Their time involvement deflects attention from their core activities, thereby it is a cost to be considered.

The hiring cost is typically tracked using the metric Recruiting Cost Ratio (RCR). A lower % indicates a more efficient recruiting function.

RCR = (Recruiting Costs / Total Compensation Recruiter) * 100

It is a good idea to monitor this ratio to keep a tab on hiring costs.

Reckrut can help you with smart, technology-based recruitment techniques. Get in touch with us today to know how.