Total Recruiting Costs

The total expenses that an organization has related to the acquisition of talent, the total recruiting costs are calculated using ISO Cost Per Hire.

According to this standard, there are 14 external costs and 6 internal costs associated with this equation.

“The internal costs variable comprises all sources of internal resources
and costs used for staffing efforts during the time period in question.
Examples of internal costs include the fully loaded salary and benefits of
the recruiting team and fixed costs such as physical infrastructure (talent
acquisition system costs, etc.).”

“The external costs variable comprises all sources of spending outside the
organization on recruiting efforts during the time period in question.
Examples of external costs include third-party agency fees, advertising
costs, job fair costs and travel costs in the course of the recruiting effort.”

 

Here is a link to additional information for the Cost Per Hire Standard:
https://www.shrm.org/ResourcesAndTools/business-solutions/Documents/shrm_ansi_cph_standard.pdf

 

Calculation:

SUM([Finance.Recruiting.Internal_Cost1] + [Finance.Recruiting.Internal….6]) + SUM([Finance.Recruiting.External_Cost1] + [Finance.Recruiting.External14])

Synonyms:
Agency Spend
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *