Recruitment costs are challenging all businesses every recruiting season. So what does recruitment cost include? How to optimize those costs?
In this article, FaroVietnam will share specific information about the 7 most common types of recruitment costs today!
Salary for recruiters
Recruitment is one of the main tasks of the HR department. Staves of the HR department receive a fixed monthly salary, which is considered as a part of the budget for recruitment. In case of inefficient recruitment, the enterprise requires to recruit more personnel for this department, which means increased recruitment costs. However, if the staff in charge of recruitment have good performance, grasp recruitment trends and take advantage of support tools, this cost will be saved a lot.
Basically, the salary for the staff in charge of recruitment is included in the fixed cost in the recruitment process, so enterprises should pay attention to this cost for reasonable payment.
Stationery for HR department
This is one of the mandatory costs in the recruitment process. This cost is used to purchase supplies and stationery for the HR department to assist in the recruitment process.
Advertising cost for recruitment
For businesses with a large scale or the demand to expand the number of candidates, they tend to invest in communication. Currently, there are many free recruitment websites that allow enterprise access quickly and easily to candidates but without the impact of the media, the job postings of businesses on these platforms will become monotonous and lack attraction to candidates.
Recruitment communication activities are an effective solution for businesses to increase their chances of reaching out to candidates, find qualified candidates and save time on recruitment.
Candidate screening fee
Each step in the recruitment process will require businesses to screen candidates. This activity requires considerable time on the part of the human resources department, but the screening of such a large number of records also generates costs in terms of papers, printing, telephone, ...
Cost of candidate evaluation period
For small and medium enterprises, recruitment activities usually only last 2-3 rounds while for large-scale corporations or businesses, the recruitment process requires some extra rounds such as knowledge testing, teamwork, etc.
These evaluation sessions last from 1-2 days generating many costs such as exam questions, venue, personnel to manage the assessment, etc.
Cost of interviews
It seems that a candidate face-to-face interview is very simple and can be arranged in a short time, but in fact, it is related to many costs such as the candidate's documents, the location of the interview, the cost of calling for an appointment, the cost of the candidate interviewing, etc.
The probationary salary
When candidates work during the probation period, they are still not considered as full-time employees. Therefore, the payment for them will be included in the recruitment budget and after the probationary period, candidates become an official employee and stick with the company for a long time, that salary will be listed in the salary and bonus expenses for the employee.
However, if the candidate does not meet the requirements of the business, they will be forced to leave. At this time, the enterprise will lose the recruitment cost of that candidate and compulsorily run the recruitment process again.
Above are the 7 most common types of recruitment expenses. If businesses are looking for a recruitment solution that is both effective, cost-effective and time-saving, please contact FaroVietnam for more detailed advice and support!
Read more: headhunter vietnam