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Home » HR Processes » Recruitment and Selection » General Recruitment » Cost of the Recruitment

Cost of the Recruitment

The recruitment process is not cheap for the organization. The HRM Function reports the cost of the external recruitment agencies, but the real cost of the recruitment process is more significant for the organization.

The visible cost of the external recruitment is about the invoices from the recruitment agencies and external job websites, but the internal damages and costs of the vacancy can be much higher to the organization.

The organization usually decides about the acceptable cost of the vacancy and it does not have to be expressed, but it can be tolerated. Many organizations decide to pay a lower salary and they accept the cost of the vacancy and the managers have to agree with that.

The organization makes a decision about the lost additional income each vacancy could produce. This is more easy for the sales function to have a clear view about the real damage made to the sales function, for the supporting staff the calculation is much heavier as the other members of the team can produce almost the same result. The most visible damage is the error rate of the team.

The organization decides by the proper setting of the compensation policy about the potential cost of the recruitment. The organization makes a decision between the visible cost of the external recruitment and invisible costs of the vacancy in the organization.