The recruitment process requires going through several stages. At each stage, costs are inevitable. Understanding the types of costs incurred in the recruitment process can help businesses balance and optimal the recruitment budget.
The following are the types of costs that will be incurred during the recruitment process.
Why is it important to know the costs incurred when recruiting?
Have a comprehensive understanding of the detailed recruitment costs have the following purposes:
- The reasonable adjustment of the recruitment budget does not mean reducing spending on recruitment, but the purpose of this is to analyze the correlation between the budget and the benefits that human resources can bring to the business. Simply, human resources help increase profits for businesses, it is reasonable to invest more in the recruitment budget.
- This is also the basis for the human resources department to consider and propose a budget for recruitment strategy.
What types of recruitment expenses?
During the recruitment process, businesses are required to take responsibility for these expenses:
- Salary costs for HR employees. Often, recruiters receive a monthly salary, and recruiting is only one of duties they have to take on. Therefore, there will be no additional salary according to the number of recruitment processes performed, but there are some exceptions such as hiring external headhunters, rewarding HR staff during high recruitment periods
- Stationery expenses for the HR department such as paper, pens,...
- The facility cost for the human resources department includes working space, electricity and water, landline phones, facilities management.
- Cost of communication, posting job ads on platforms
- The cost of organizing or participating in recruitment events such as job fairs, job fairs ... Here, businesses will both find suitable candidates and promote and build a recruitment brand image for employees. enterprise.
- The cost for recruitment services in case the HR department can not complete the mission owing to urgent human resources demand or lack of the competency. Using an external recruitment service will meet the requirements of the business, but the high budget.
- Candidate interview costs include waiting room space, electricity, water, papers, inspection,...
- The cost for operating recruitment channels such as websites, social networks, recruitment management software, etc.
- The probation salary for the successful candidates. After the probationary process, under circumstances the candidates leave business due to not meeting the requirements of the job or not matching with the working environment, businesses will lose part of the costs spent on re-recruiting and particularly, the higher the position, the higher the trial salary will be.
- The cost of training new employees depends on the characteristics of the industry or the requirements of the business.
Above are the types of costs that will be incurred during the recruitment process. If businesses are looking for a reputable consulting and recruiting unit, businesses can refer to Faro Vietnam Day. We are a specialized unit of Faro Group - a subsidiary of Outsourcing Inc. - a leading HR Service Provider Company in Japan. With more than 10 years of establishment and operation, we are proud to be recognized as the leading HR service provider in Vietnam. We not only bring satisfaction by service quality but also support in all service areas that customers choose to use. For more detailed advice, please contact the hotline of Faro Vietnam.