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The True Cost of Hiring

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The True Cost of Hiring $ $ Your mission, should you choose to accept it: You, the hiring manager, must find the ideal accounting manager in the shortest time possible. Don’t know where to start? Don’t worry – this will help. Depending on how much time & money you can afford, you have two options. Choose wisely - the stakes are high. • FACTS • What’s Your Time Worth? The average manager in the US makes This is you Your Competing Priorities You must juggle regular work & hiring. $90,000/year Hourly wage: $47 95 days You must fill the vacant job position ASAP. Accounting Manager average salary: $75,000/year You have a limited hiring budget. Using a Recruitment Agency Hiring by Yourself 1 Average # of days to fill a position: WRITING THE JOB DESCRIPTION & POSTING ADS FOR 3 MONTHS 1 FIND & HIRE A RECRUITER YOU DON'T HATE 2h Write Ad Copy $47 1h Post a Job Ad $117.50 2.5h 2 $94 $ RECRUITER DOES THE WORK! LinkedIn Ad $1,500 Recruitment agencies usually charge companies a hiring fee of approximately 15%-30%. Monster Ad $675 15-30% In this case, you need to hire an accounting manager with an annual salary of $75,000. CareerBuilder Ad $1,257 $75,000 You’d expect to pay ~20% of that salary. -20% Craigslist Ad $225 Facebook Ad $95 Overall Time & Cost 3.5 h $3,991.50 $ HIRING FUNNEL 300 1 Job Offer Respond 4 Final Interview 200 2 Seen by Hiring Manager 8 Interview Overall Cost $ 3 7.4 h $ $348 Previous Companies Education x2 PRE-SCREENING & CONDUCTING INTERVIEWS REVIEWING RESUMES Job titles $18,750 Start/end dates Overall Time & Cost 3.6 h 3 $ $169.20 PRE-SCREENING & CONDUCTING INTERVIEWS Overall Time & Cost 12.15 h 4 $ $571 HIRING WINE & DINE CANDIDATES 4 HIRING WINE & DINE CANDIDATES Overall Time & Cost Overall Time & Cost 4h 4h $ $188 Hiring by Yourself 23.3 h $ $188 Using a Recruitment Agency 13.4 h TIME MONEY $4,920 $19,380 THE REAL QUESTION $ Is there a win-win situation when it comes to both costs and time spent on hiring? REFERENCES Salary of manager http://www.glassdoor.com/Salaries/average-manag er-salary-SRCH_KO8,15_IP5.htm Facebook job posting costs http://moz.com/blog/1-dollar-per-day-on-facebookads 25 Feb 2014 http://www.dbs.deusto.es/cs/Satellite/dbs/en/news/ community-manager-digital-marketing-manager-so cial-media-manager-web-developer-and-digital-co mmunication-specialist-are-the-five-profiles-mostoften-sought-after-by-companies/noticia Craigslist cost http://www.craigslist.org/about/help/posting_fees 2 May 2014 (software engineers are in demand) http://www.nydailynews.com/jobs/sought-after-job -applicants-article-1.1776972 17 June 2014 (top 6 skills that will be most sought after) http://articles.economictimes.indiatimes.com/2014 -06-17/news/50651389_1_business-intelligence-en gineers-analytics 31 March 2014 (median household income of Americans in Feb 2014) http://econintersect.com/a/blogs/blog1.php/median -household-income-advances-in Linkedin job posting costs https://www.linkedin.com/today/post/article/2014 0419011339-56543389-how-much-does-marketin g-with-an-ad-agency-marketing-company-social-m edia-company-and-video-companies-really-cost How long it takes for job positions to be filled http://www.nytimes.com/2013/03/07/business/eco nomy/despite-job-vacancies-employers-shy-away-fr om-hiring.html?pagewanted=all&_r=1& Statistics Source http://www.ere.net/2013/05/20/why-you-cant-geta-job-recruiting-explained-by-the-numbers/ Reference infographic http://www.huffingtonpost.com/2012/06/04/the-tr ue-cost-of-hiring-infographic_n_1568295.html Traditional recruitment process http://flylib.com/books/en/2.309.1.35/1/ 4 April 2014 The cost of hiring http://www.hrbartender.com/2014/recruiting/the-c ost-of-hiring-in-2014-infographic-friday-distraction/ Cost of advertisement per month http://job-websites.findthebest.com/q/61/1088/Wh at-is-the-cost-per-month-to-post-a-job-listing-on-C areerBuilder-com-job-website


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