What is the true cost of hiring?
April 2, 2019
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 …$___
Recruiting
Newspaper Ad…$___
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 …$___
Background Check
(criminal/drug/credit)…$___
Subtotal…$___
The cost to Repeat Process:
(if your hire does not work out)…$___
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