SME Planned Recruitment is Strategic
Recruitment
Strategic HRM is key to
organizational growth. SMEs are watching every penny. Hence, it is imperative
that HR functions are aligned with Business functions the first time.
Recruiting is at the top of HR challenges in small, medium and large
organizations. Gaining and retaining top
talent is essential. The costs associated with a recruitment selection can be
more than a SME can risk. That includes that overall headache of a wrong
hire.
An analysis of the recruitment process
must include:
* advertising,
* recruiting fees (if utilizing a headhunting
agency),
* total hours spent interviewing,
* testing, and training new employee(s),
* temporary employees hired to fill the position until
a permanent hire is hired,
* costs
of salary and benefits paid to the new hired employee compared with those of
the employee replaced.
In addition to the above
variables, a detailed job description is included. If a job description is in
place, the current job duties should be compared with the position to determine
if any job functions will be added or eliminated for the position of the new
hire. (Example 1: Filling a legal
secretary position in a law office, if the attorney assignments have changed or
practice area have changed, same should be noted in an updated job description.
Example 2: Filling a billing clerk position in a medical office, if the billing
clerk is now required to open and/or close the office, same should be
indicated in the updated job description. Job descriptions are very
descriptive and have to be up-to-date. Failure to maintain updated job
descriptions will result in complaints and even legal action.
(estimate) Annual (CpH)
Costs Included in CpH
|
Costs
|
Advertising
and event costs
|
$1000
|
Online/Internet
services costs (Costs
to post job on Careerbuilders)
|
$1000
|
Recruiter
costs
|
$1000
|
Referral
bonus costs
|
$150
|
Third-party
contracts and agency fees (Contract
costs associated with paying Agency)
|
$2000
|
Applicant
travel costs
|
N/A
|
Screening/testing
costs (Hours and
fees associated w/Interviewing, background checks, checking references, testing)
|
$500
|
Signing
bonus
|
N/A
|
Cost-per-Hire Costs
|
$3800
|
(estimate) Individual
Cost-per-Hire (CpH)
Costs Included in CpH
|
Costs
|
Advertising
and event costs
|
$419
|
Online/Internet
services costs (Costs
to post job on Careerbuilders)
|
$550
(estimate)
|
Recruiter
costs
|
$1000
|
Referral
bonus costs
|
$150
|
Third-party
contracts and agency fees (Contract
costs associated with paying Agency)
|
$2000
(estimate)
|
Applicant
travel costs
|
N/A
|
Screening/testing
costs (Hours and
fees associated w/Interviewing, background checks, checking references, testing)
|
$500
|
Signing
bonus
|
N/A
|
Cost-per-Hire Costs
|
$4319
|
The cost vary (annual/individual)
according to what recruitment process is selected. The above calculations are
estimates. Do the above appear expensive? Figure the above costs -in addition to- the costs of temporary
employees, stress of incompatible hires and recurring costs.
HR
Metrics measures costs that are strategically planned, which in turn make the
CpH an investment, instead of an unexpected expense!
Until Next Time!
April D. Halliburton, President
All-4-HR & Business
Solutions, LLC
http:www.all4hrbiz.net