Part III of our eBook: A Guide to Planning Your Hiring Budget & Maximizing Recruiting Spend takes you a step further by showing you how to break down your costs and understanding how it will impact your overall budget.
Now that you’ve taken the time to meet with your hiring managers, you know what they need and the budget you’ll need to pay their new hires (as well as some information to help you with budgeting for hires to replace turnover). While this budget doesn’t come out of your recruitment budget, it is useful in determining how much you should spend on tools, branding and salaries to FILL these positions.
Much in the same way a CMO needs to know sales projections to build his or her budget, a talent acquisition professional needs to understand what’s been allocated to each role or department to decide what they’ll spend on getting people in the door for those positions!
Calculate basic recruitment costs. These may include:
Next, it’s time to do some math to create a more clear estimate and hypothesis about what these new positions and departments will consist of. This is where you dive deep into the full burden of acquiring a new employee. Here’s a quick run down:
Lastly, make sure to keep all this information together. Although this formula should give you an hourly average of the total burden, keep all these numbers because they will be essential when looking toward any cost needed from your company - expected or unexpected.
This is just part III of our eBook: A Guide to Planning Your Hiring Budget & Maximizing Recruiting Spend. As 2017 comes to a close, 2018 brings forth a mountain of possibilities. Be prepared to hire the talent you need. Download our eBook to see how setting a proper budget is the first step in recruitment success.