SME Planned Recruiting is Strategic Recruiting

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