RECRUITMENT METRICS :

CALCULATING THE HIRING

COSTS

PIYUSH PATIL
19106A1027
INDUSTRY OVERVIEW

COMPANY RECRUITMENT HIRING COST

TQR, is a leading Firm recruited 60 Calculate the entire

private sector banking candidates from hiring cost so that the
and financial services external and internal finance dept could
company sources settle the accounts
 1. External Job posting through Career Fairs and
Advertisement (online and print)

2. HR Team evaluated different sources of online job

PLAN FOR HIRING posting such and selected Monster.com

3. Internal Job Posting through Ads on notice boards ,

Intranet and interdepartmental posting
PARTICULARS COST INCURRED
1.Monster.com External Hiring Cost
• Job posting 30,000per Month(*3
Months)
1. Out of the total 50 selected for external
• Resume Access 8000per month(*3 sources of which 18 were through referrals.
Months)
2.Career Fair 25,000 2. Eemployment agencies to generate job
applications from potential recruits which
3.Advertisement 50,000 costed 50,000 for generating the 100
4.External Referral Bonus 90,000 applications

5.Employment Agency 50,000 3. The external hires had to do medical

examination to get there record verified
6.Third Party Agencies costing 600 and 500 per candidate.
• Medical Examination 30,000(600*50)
• Record Verification 25,000(500*50) 4. According to policy of reimbursing recruited
candidates for the travel costs they had
incurred 2,000 per candidate
7.Travelling Cost 1,00,000(2000*50)
TOTAL EXTERNAL 4,84,000
COST
INTERNAL HIRING
PARTICULARS COST INCURRED
COST
Job Posting(ads on 10,000
1. Out the 10 candidates 5 were hired notice boards ,
through referrals costing 2,000 per
intranet and
candidate
interdepartmental
2. Ads on notice boards and posting)
interdepartmental job postings on Internal Referral Bonus 10,000(2000*5)
the internet costed 10,000
(5 Referral)
3. Four ccandidates accepting a Relocation Expense 60,000(15,000*4)
transfer were provided relocation
expenses which costed 15,000 per Third Party Agencies:
employee. -Medical Examination 6000(600x10)
-Record Verification 5000(500x10)
TOTAL INTERNAL 91000
COST
TOTAL HIRING COST
PARTICULARS CALCULATIONS COST INCURRED
Total internal cost 91,000
Total external cost 484,000
Salaries & benefits
- 5 hr staff (200 x 8hrs x 6Days) 48,000
-3 managers x5 86,400
-4 support staff (600 x 8hrs x 6Days) 9,600
-overhead charges x3 960
10% of daily wages (50 x 8hrs x 6Days) x
(4support staff) 4
(5 x 8hrs x 6Days) x
4

Miscellaneous 20,000
Joining expense

TOTAL HIRING 7,28,960

COST
Cost per Hire:
External Cost per Hire = Total External Cost = 484,000 = 9,680
Total number of Hires 50

Internal Cost per Hire = Total Internal Cost = 91,000 =

9,100
Total number of Hires 10

Total Cost per Hire = Total Hiring Cost = 7,28,960 =

12150
Total number of Hires 60
THANK YOU