Recruitment cost refers to all the costs involved in hiring a new employee. It involves the cost of giving advertisement, screening Resume, Conducting interviews etc.
Recruitment costs are becoming increasingly high during recent times as there is a dire need for them to look for something cheap without compromising on the quality of recruits.
Basic distinguishable stages of recruitment activities are:
Main parameters related to recruitment cost during different stages are
Conversion Ratio (Volume of Resumes) (Vendor Specific)
= No. of resumes shortlisted/ No. of resumes sourced by vendor
Conversion Time (in days) (Vendor Specific)
= Date of Shortlist – Date of Request
Volume Processed Ratio (per day) (Recruiter Specific)
= No. of resumes processed/ No. of resumes sourced by vendor
Processing Time (in days) (Recruiter Specific)
= Date of Shortlist – Date of Sourcing entry
Selection involves a fair deal of relationship management. Hence, most metrics revolve around feedback capturing mechanisms to identify experiential nodes at various selection touch-points.
Fitment Closure Time (Vendor Specific)
= Date of Offer – Date of Selection
Conversion Ratio (%) (Vendor Specific)
= No. of offers accepted / No. of offers made
On-boarding encompasses efforts to acquire, accommodate, assimilate and accelerate new team members, whether they come from outside or inside the organization. This includes induction training conducted to give a brief overview of the company policies, work methods and long term visions and objectives.
How to reduce recruitment cost