Cost of Recruitment
Helping Decision Makers Measure Financial Impact
While evaluating the option of partnering with DreamJobs to address your talent acquisition challenges, a primary driver will undoubtedly be cost. How much will you need to pay us to provide a solution? Experience and capability aside, the financial impact of such a decision will always be considered. While knowing the cost-per-hire associated with recruiting talent is important, we believe it is only half of the equation. We believe:
Cost-Per-Hire + Cost-Of-Vacancy = Total Cost of Recruitment
Cost of Vacancy is the financial impact (a combination of hard and soft costs) of not having a position filled. Knowing the COV allows you to properly evaluate the ROI of costs associated with recruitment. In many cases, DreamJobs can reduce your average time-to-fill by 20-25% resulting in a significant positive ROI. A reduction in turnover as a result of hiring best-fit candidates (those who are aligned with your culture) also has a dramatic impact on ROI for our customers. In fact, many client's achieve a 15% to as much as a 40% reduction in new hire attrition as a result of our partnered approach to recruiting.
You may use the COV calculators provided by way of the links below to help you estimated your cost-per-vacancy for a specific opening.
What is taken into consideration when calculating COV?
- Compensation of the vacancy
- Lost productivity resulting from a position being left vacant
- Cost associated with overtime and/or temporary staff to cover the vacancy
- Cost associated with new hire training
- The time it takes to fill the position
Another method of calculating the cost of a vacancy is to tally the actual hard costs associated with turnover. While this method does not take into account the soft costs associated with a vacancy (overworked employees, manager's having to cover, not terminating under-performing employees, morale, customer satisfaction issues), it will help you better understand the financial impact to an organization when turning over a position. Download the worksheet found at the link below to add up these costs.