What constitutes recruitment budget

WHAT CONSTITUTES RECRUITMENT BUDGET

There are various heads to be considered while devising a recruitment budget.

A generic list of cost categories which are to be tabled under recruitment budget is given below.

However, it is to be noted that the budgeting of costs varies from company to company.

Advertising Costs The amount of money to be spent on advertising throughout the budget period needs to be taken in consideration. Major advertising channels on which money is spent are 

Online Services

Present workforce is online savvy and look for opportunities through online job portals.

To be able to post job openings in job sites such as Naukri,Monster,Times Jobs,SimplyHired,Indeed,Shine, a subscription amount is to be paid to the portals. Either premium or classified job postings can be bought, depending on which the price will vary.

Advertising on social media, such as Facebook, LinkedIn, Twitter, subscribing to Google adwords, making use of SEO etc., ensure a wider reach into potential employee market and also need some investment.

A few Applicant Tracking Systems offer a single click job posting functionality to post job openings to all major job portals and social media pages.

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Radio

If openings in your company have a large and wide target base, radio services are apt for the advertising. The rates are quoted on per second basis. 

Print

Print advertising includes publishing ads in newspapers, industry specific publications, pamphlets etc. 

Television

The charges are quoted on per second basis. The quotes may vary for peak traffic hours. 

Job Fairs

A job fair is where a large number of job applicants and employers meet. Setting up a desk in a job expo would require some investment.

Consultancy Costs If your or firm outsources filling job vacancies to outside help, then the commission to be paid to those recruitment agencies needs to be taken into account.

Hiring contracts with consultancies can be of two types, annual and per job opening based. The prices are commission based in terms of percentage of a candidate’s CTC. Hiring agencies and negotiating can be done in a cost effective and non-hassle way through a few recruitment software.

Travel Costs The travel costs incurred by recruiters to reach off site interview sites should be considered. If your organization’s policy is such that travel costs of candidate’s are covered, the reimbursement charges are also to be budgeted for.

Relocation Costs These costs cover the expenses required for reimbursing the relocation and housing cost of new joiners in an organization. A few heads under this cost are house hunting Costs, moving costs, mortgage difference differentials,temporary housing,closing costs, housing agency costs, miscellaneous etc.

Referral Bonus

Referral bonus is the incentive given to employees for referring candidates to fill job openings. It is given as a percentage of the candidate’s CTC. The amount to be allocated for referral bonus needs to be considered in the recruitment budget.

Internal Recruiter Costs The compensation and incentives offered to internal recruiters should also be budgeted for.

Internal recruiters are people who are directly involved in the interviewing and hiring activities and do not usually include administrative staff.

Assigning targets and monitoring performance of internal recruiters can be easily done using applicant tracking system.

Sign-On Bonus A sign-on bonus is an incentive given to selected candidates to join the company. If there is a provision in the company policy for this bonus, it needs to be accounted for. It is given as a percentage of the candidate’s base salary.

Recruitment Tool Costs If the company uses software or tools such as Applicant Tracking System, online testing software etc.to manage the hiring process, the subscription or purchase cost of these software needs to be taken into consideration.

Miscellaneous It is suggested that an additional 10% of the total budget be allocated for unforeseen and miscellaneous expenses.