Recruitment budgeting

Budgeting for version 2.0

Recruitment 2.0 budgeting..!

 If recruitment now is about version

2.0, then budgeting for recruitment
can’t remain the same as earlier.
 Over the years, the way
organizations budget for their
internal recruitment has remained
just as a percentage, with allocations
based on historic data.
 Is this the right approach?
Recruitment 2.0 budgeting..!
 Budgeting MUST also evolve with
Recruitment 2.0 happening now!
(beginning to happen?)
 Traditional recruitment budgets included –
 Cost of newspaper adverts
 Internal referrals bonus kitty
 Recruitment agency fee
 Administrative recruitment ops cost
 Re-imbursements
 Branding costs (HR/recruitment branding)
 Are these above costs relevant today and
justified from a RoI point of view?!?
Recruitment 2.0 budgeting..!

 Most of these cost heads have

remained, and are continued just
because they are historical
 And most of these are continued with
no analysis of what they achieve
after the expense is incurred!
 This is the precise reason why budgeting
also ought to be in sync with version 2.0
(recruitment budgeting 2.0?)
Recruitment 2.0 budgeting..!
(What shall it comprise?)
 Ideally, the new budget
overheads should be in sync
with the trends in recruitment –
now.
 They MUST incorporate the new
methods that the organization
carries out the task of fulfilling
talent.
The new budget…!

Some heads can be

 Incentives to internal HR/recruitment
team (exponential vis a vis contribution)
 Incentives to line for fulfilling positions

 Social networking & Blogging – all

related long term brand building costs
 Structured mapping costs (of industry
talent)
 Adverts in targeted industry publications

 Academia tie-up costs

Rules of the new budget

 Eliminate every single cost that

is not justified or relevant for
recruitment today.
 Eliminate all vendor costs –
increase the incentives/benefits
for internal fulfillment
 Reward internal brand
ambassadors for their
contribution to talent acquistion
See costs as investments, not
expenditure…
 In the era of recruitment 2.0, you
cannot measure RoI in year
one.
 For the 1st few years, look at
most costs as investments, not
expense for the organisation.
 Create finance and accounts
systems and processes for the
new need…
Think…

 It’s just a thought – and a call for

a discussion to evaluate the
current conventions in
recruitment budgeting
 This can be used as a hint – and
organization specific evaluation
be done on the what and how of
the new recruitment budgets.
Thank you…

 Thanks for your time

 Connect with me
 Mail – hrstrategies@gmail.com
 Handphone - 9840935357