[Company Name]

Automated resume and application processing (ARAP) savings calculator

[Date]

Recruiting data worksheet

Hiring practices
How many employees are in your organization? 20,000
How many people did you hire during the last fiscal year? Exempt 1,100 Nonexempt 350 1,450
How many people do you plan to hire during this fiscal year? Exempt 1,150 Nonexempt 450 1,600
How many people do you plan to hire during the next fiscal year? Exempt 1,200 Nonexempt 600 1,800
Is your organization's cost-per-hire information broken down by position, department, and
region? Yes
What is your organization's hiring cycle time (in days)? 64
What variables does your organization use to measure hiring cycle time?

1.
2.
3.
How many resumes are processed annually? 50,000
How many applications are processed annually? 50,000
What is the approximate percentage of the total resumes that your organization received
from each of the following sources?
Unsolicited mail 10.0%

Recruitment advertising (in publications such as newspapers and magazines) 15.0%

Outside staffing firms 15.0%
Career fairs 10.0%
Campus recruitment 15.0%
Internet advertising/posting boards 25.0%
Employee referrals 10.0%
Of the resumes received by your organization, what percentage are received:
In paper form (this includes fax)? 50.0%
Through an online application? 25.0%
Through e-mail as an attached file? 25.0%
What is the annual turnover rate for your organization? 5.0%

Annual staffing expenses

How many FTEs in your organization are allocated to the processing of resumes and
applications? 7
What is the average, fully burdened, hourly rate paid to your employees who process
resumes and applications? $30.00
How many documents (resumes and applications) can an employee
process per day? 75
How many hours per FTE are available annually to process documents? 1,446
If applicable, what are your HR department’s annual chargebacks to other departments
for your recruitment services? $0

How much does your organization spend annually on outside staffing firms?
Retained recruiting firms $125,000
Contingent recruiting firms $100,000
Temporary placement firms $100,000

Annual recruiting expenses—Advertising

How much does your organization spend annually on recruitment advertising?
Newspapers $50,000
Advertising firms $50,000
Internet advertising $50,000
Magazines and periodicals $25,000

How much does your organization spend annually on external job posting environments?
Internet job boards $25,000
Paper-based bulletin boards $7,500
Kiosks $25,000

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Annual recruiting expenses—Special programs and career fairs

What types of special programs do you incorporate into your organization's recruitment
efforts (for example, virtual job fairs, radio promotions, special public relations activities, recruiter
attendance at trade shows, and recruiter attendance at local community events) ?

1.
2.
3.

How many of these special programs does your organization commit to annually? 5
How much does your organization spend annually on these special programs and
events? $10,000
If your organization recruits internationally, what are the annual costs associated with visa
attainment, legal matters, expatriate-related matters, and other efforts?

How many career fairs does your organization attend annually? 10

What is the average cost for attendance at these career fairs?

Include costs for registration, booth space, travel, lodging, meals, and other related expenses. $10,000

Annual recruiting expenses—Campus recruitment

Is your organization actively involved in campus recruitment? Yes
On how many campuses is your organization involved in recruitment? 40
What are the annual college recruitment costs? $80,000
How many
Does new hires result
your organization havefrom these efforts?
an active internship or co-op program on these 100
campuses? No
How many interns and co-op students are hired annually? 100
Do you plan to expand your organization's campus recruitment efforts to
additional campuses or strengthen relations with your current campuses? Yes

Annual recruiting expenses—Other

How much does your organization spend annually on travel, lodging, meals, and so on,
associated with your recruitment efforts? This should include on-campus recruitment
events, interviews, bringing candidates on-site for interviews, and other efforts. $50,000
How much does your organization spend annually on relocation? $100,000
How much does your organization spend annually on signing bonuses and other material
perquisites? $100,000
What is your organization's annual expenditure for third-party vendor services such as
background checks, credit checks, prescreening services, and surveys? $50,000
If your organization uses an employee referral program (ERP), what is the average
payment to employees for each hire? $750

How many new hires result annually from your organization's employee referrals? 100
If applicable, what are the annual IT chargebacks allocated to your
HR department? $0
Annual cost per hire $921

Potential savings calculations for ARAP

In-house calculation
Number of resumes and applications processed annually 100,000
Current number of FTEs allocated to this process in your organization 7
Fully burdened hourly rate of FTEs allocated to this process $30.00
Annual cost to process these documents in-house $303,660
Number of FTEs required to effectively meet your organization's annual document-
processing needs 5.53
Current cost per document processed $3.04

Outsourced calculation
Cost per outsourced processing of each document $2.50
Annual cost of outsourcing $250,000

Resume-to-application ratio:
Current percent ratio of resumes to applications 50.0%
Current percent ratio of applications to resumes 50.0%

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Potential savings opportunities for ARAP
Staffing expenses
Percentage of customers' internal processing costs typically reduced by using ARAP
solutions 25.0%
Potential cost savings by applying customers' typical internal processing cost reduction to
your organization's current document-processing costs Reduced annual costs: $227,745
Potential savings: $75,915
Annual cost for outside staffing firms $325,000

Potential percentage of costs reduced by incorporating outside staffing firms into ARAP 20.0%
Reduced annual costs: $260,000
Potential savings: $65,000

Advertising
Annual cost for recruitment advertising $175,000
Potential percentage of costs reduced by using ARAP solutions 25.0%
Reduced annual costs: $131,250
Potential savings: $43,750
Annual costs of external job postings $57,500
Potential percentage of costs reduced by using ARAP solutions 20.0%
Reduced annual costs: $46,000
Potential savings: $11,500

Special programs and career fairs

Number of special recruitment programs attended annually by your organization 5
Average cost of special recruitment programs $2,000
Potential percentage of costs reduced by using ARAP solutions 10.0%
Reduced annual costs: $9,000
Potential savings: $1,000
Number of career fairs attended annually by your organization 10
Average cost of career fairs $1,000
Potential percentage of costs reduced by using ARAP solutions 10.0%
Reduced annual costs: $9,000
Potential savings: $1,000

Campus recruiting
Annual costs of college recruitment $80,000
Potential percentage of costs reduced by using ARAP solutions 20.0%
Reduced annual costs: $64,000
Potential savings: $16,000

Travel, lodging, meals, and other miscellaneous items

Annual costs for travel, lodging, meals, and other miscellaneous items $50,000
Potential percentage of costs reduced by using certain ARAP solutions 10.0%
Reduced annual costs: $45,000
Potential savings: $5,000

Relocation
Annual relocation costs $100,000
Potential probability percentage of filling an opening with local candidate increased by
using ARAP solutions 25.0%
Reduced annual costs: $75,000
Potential savings: $25,000

Signing bonuses and perquisites

Annual costs of signing bonuses and other perquisites $100,000
Potential percentage of costs reduced by using ARAP solutions 20.0%
Reduced annual costs: $80,000
Potential savings: $20,000

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Third-party vendor services
Annual costs of third-party vendor services $50,000
Potential percentage of costs reduced by integrating third-party vendors into ARAP 20.0%
Reduced annual costs: $40,000
Potential savings: $10,000

Employee turnover
Rate of employee turnover 5.0%
Potential number of replacement hires reduced by using ARAP solutions 1,000

Potential percentage of number of replacement hires reduced by using ARAP solutions 10.0%
Potential savings: $92,149

Opportunity costs of open positions

Your organization's current open-position cycle time (in days) 64
Average per-day opportunity costs $821
Reducing the time to fill vacancies by: 15.0%
Potential savings in this fiscal year by reducing the time to fill vacancies $12,610,560

Potential management time savings per hire by using ARAP solutions (in hours) 2
Fully burdened hourly pay rate of managers during last fiscal year $35

Potential savings (based on last fiscal year's total number of hires and last fiscal year's
fully burdened hourly pay rate for managers) by reducing the time to fill vacancies $537,600
Potential savings: $13,148,160

Summary of potential savings opportunity

During the first year of use of ARAP solutions, your organization could realize the following
savings based on your cost survey results $13,514,474

A breakdown of these cost savings is listed below:

Savings category Potential savings

Automated resume and application processing $75,915
Outside staffing firms $65,000
Recruitment advertising $43,750
Special recruitment programs $1,000
Career fairs $1,000
External job postings $11,500
College recruitment $16,000
Travel, lodging, meals, and other items $5,000
Relocation $25,000
Signing bonuses and perquisites $20,000
Third-party vendor services $10,000

Turnover $92,149

Subtotal $366,314

Add opportunity costs:

Opportunity costs of open positions: $13,148,160

TOTAL OPPORTUNITY FOR SAVINGS $13,514,474

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