This tool is used to assist in
calculating the anticipated and unexpected costs associated with
hiring a new employee.
"COST PER EMPLOYEE IS FOR ONE
HIRE ONLY AND DOES NOT INCLUDE THE COST OF IDENTIFYING,
INTERVIEWING, AND ULTIMATELY NOT HIRING UNSUITABLE APPLICANTS"
Enter amounts in the fields that are applicable to your business.
Press the tab key to move to other fields and have the amounts
totaled into the category subtotals. Press Calculate to total all
amounts and then determine your actual costs of hiring a new
employee. |
RECRUITMENT STRATEGY |
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1. Job description |
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2. Find job applicants by |
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a. advertising |
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b. internal referral |
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c. recruitment firms |
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3. Review application |
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4. Phone screen application |
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5. Interviews: number of x cost per
interview |
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6. Travel: yours theirs |
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7. Accomodations (HR costs) |
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| Total of Recruitment
Strategy |
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| HIRING COSTS |
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1. Prepare Offer |
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2. Negotiations/Legal
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3. Travel |
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4. Third party recruitment fees |
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5. Employee documentation |
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6. Value of equipment provided (computer, car, PDA,
etc.) |
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| Total of Hiring
Costs |
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| TRAINING |
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1. Travel |
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2. Materials
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3. Relocation |
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4. Productivity Reduction |
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5. Management time |
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| Total of
Training |
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| WAGES and BENEFITS |
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1. Salary and benefits (probationary period) |
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2. Ongoing non productive time
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3. Lost sales revenue |
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4. Lost customer good will |
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5. Lost opportunity cost |
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| Total of Wages and
Benefits |
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| REPLACEMENT COSTS |
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1. HR/Management time |
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2. Councelling (internal)
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3. Legal |
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4. Severance |
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5. Outplacement |
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| Total of Replacement
Costs |
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Total of All Costs: |
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Annual Turnover Cost |
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Total Employees |
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% of Annual Turnover |
% |
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Total Hiring Cost |
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Cost comparison by using assessments |
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Average assessments used per new hire |
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Cost per assessment |
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Assessment Costs are % of the Annual Turnover
Cost. |
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Total Company New Hires per year |
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Total Assessment Costs for All Hiring per
year |
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Expected Savings by Using Assessments
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Reduce turnover by |
% |
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Annual savings would
be |
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Click Here
to contact us now or Call 1-800-211-6995 |
