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Hr budget template11/7/2023 ![]() ![]() Recruiting Expenses (background checks, assessments, etc.).Recruitment Marketing (Indeed, LinkedIn, Zip, career site, email, SMS marketing, etc.).Recruiting Tools (Sourcing – Loxo, texting – Canvas, etc.).Tim Sackett, President of HRU Technical Resources, breaks recruiting costs (beyond personnel) into these 4 groups with examples for each: Online Presence: Employer Brand, Social Media, Glassdoor, etc.īrad Cook, the Vice President of Talent Acquisition at Intuitive, tends to break recruiting budget down into these 8 categories:.She finds the following are the main items her clients spend on recruiting: Need more recruiting budget line items? Here are some other thoughts: Recruiting Budget Line ItemsĮlaine Davidson, CEO of Beacon Lane Consulting, a global (but boutique) talent consulting firm, has clients with budgets ranging from $1 million to over $10 million USD.Įlaine says the exact list of recruiting budget items depends on what the employer’s focus is at the moment (e.g., implementing a new ATS, adding on a sourcing tool, Candidate experience tool, etc.). Replacement lost productivity and training per position $100kĪ Sample Recruiting Budget of a 600-Person Tech Company (hiring 80 people per year)Īnother friend of mine (anonymous) gave me this example of how much a fast-growing tech company spends on recruiting.Management/Employee time per interview & onsite hosting – $.5k. ![]() Candidate travel/expense per interview – $1K.Specialized advertisement per position – $2K.Linkedin advertisements – $2KAgency fees per hire – $40K.University relations contributions – $10K.ATS Software (annual subscription/maintenance) – $50K.Scheduling Assistant (fully loaded) – $80K.Recruiting Manager (fully loaded) – $200K.It assumes hiring 100 people per year because the company requires a 5% headcount growth rate but has a 15% turnover rate. In this scenario, the Recruiting Manager reports to the VP of HR. My good friend Philip Ziman, an Adjunct Professor from the University of California, Santa Cruz, gives us the below sample recruiting budget for a 500-employee enterprise. Next, let’s look at a couple of sample recruiting budgets from friends of mine kind enough to share what they know: A Sample Recruiting Budget for a 500-Person Enterprise (hiring 100 per year) So another way to estimate your recruiting budget (using an RPO) is to multiple your average salary of the hires needed by 7.5%. Some estimates are that the cost-per-hire using an RPO can be 5% to 10% of the first-year salary ( source: Hirevelocity Cost Per Hire). You’ll notice that the total recruiting spend ($1.7 million) and cost-per-hire ($3,400) are the lowest of the 3 recruiting budget approaches. Whether it’s Workday, Cisco or Apple, recruiting is not their business.”Ī good RPO company will outline your recruiter needs by the job type/volume For example, if you feed your hiring needs to an RPO like WilsonHCG, they might work up a proposal like the following (again, using the 500 hires per year example): Recruiting Budget Using an RPO “Recruiting is what we do…that’s our business. Their CEO John Wilson explains it this way: The beauty of an RPO is that they recommend the recruiter resources, so you know what your costs are going to be. Recruiting Budget Using an RPOĪnother way to estimate recruiting spend is to consider outsourcing all recruiting to an RPO (Recruitment Process Outsourcing) company. ![]() Your cost-per-hire is 19% higher ($5,075 versus $4,250) than the simple formula from section 1. The big difference, of course, is the Leadership/C-Suite jobs - those tally up to $750K USD ($50K*15 hires). If your hiring mix is fairly even and you’re not using external recruiters, the simple formula). See below: Example of Simple Recruiting Budget How many people do you need to hire this year? Then, you simply multiply your $4,250 assumed cost-per-hire by the hires you need in a year (500 in our example). So, let’s use the midpoint of that range: $4,250. Resources like SHRM and Bersin peg the average cost-per-hire at around $4,000 to $4,500. You’re just using a simple formula:Īn average cost-per-hire is easy to find. The hiring # number multiplied by the average cost of hire can give you a rough estimate of how much you’ll spend on recruiting. ![]() This can be as simple as 500 hires over the next 12 months. Simple Recruiting Budget (# of Hires * Cost-per-Hire)Ī good place to start your recruiting budget is to establish your hiring volume over a specific period. ![]()
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