What is the true cost of hiring?

Hiring people is expensive. Too often companies look at the cost of running an ad and equate that to their total cost of hiring. The true cost can be astonishing. The following are the categories to consider when evaluating the true cost of hiring:

HR Time:

  • Develop job description
  • Prepare and place a classified ad
  • Review resumes
  • Telephone screen candidates
  • Schedule, prepare for and conduct interviews
  • Assessment/skills testing
  • Drug
  • Reference checks
  • Processing paperwork (application, I-9, W-4)

Other Recruitment/ Interviewing Costs:

  • Cost of advertising (classified, job board, other online costs)
  • Legal cost
  • Management interview time
  • Unemployment cost

Other Costs:

  • Lost productivity of HR and hiring manager
  • Cost of vacancy in the position

Cost Comparison Worksheet

The following is a cost comparison worksheet that will help you determine the cost of direct tire versus using a staffing firm:

On Your Own

Develop Job specs …$___


Newspaper Ad…$___

Internet Job Posting…$___

Other Advertising… $___

Direct Recruiting

# hrs __ x rate___ =…$___

Resume and Application Revies

#hrs___ x rate___ = …$___

Scheduling and Interviewing

#hrs___ x rate___ = …$___

#hrs___ x rate___ = …$___

Reference Checks

#hrs___ x rate___ = …$___

Skills Testing …$___

Background Check



The cost to Repeat Process:

(if your hire does not work out)…$___

Total Potential

Cost Of Hire …$___

All the above are included in our service fees or provide at no additional charge.

Contact Murray Resources to learn more about the true cost of hiring and how to reduce that cost through using a recruiting firm, or call us at (713) 935-0009