Employment Testing Blog

Recruitment Costs: Top Employee Turnover Costs Part 3

  

  

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Earlier in this series we've looked at the first two parts of employee turnover costs:

• Separation costs

• Vacancy costs 

Now it's time to jump into the third category of employee turnover costs:  "Recruitment Costs".  This category can be the most complex because of the multiple layers of costs involved:

• Posting Costs:  Includes the hard costs of advertising the position as well as the cost of HR staff's time (or your time) to write the ads and update the job descriptions. Also include any time spent attending job fairs.

• Screening Costs: Staff time spent whittling down the resumes to the first round of candidates.

• Interviewing Cost:  Staff time spent per interview, including interview preparation and research.

• Pre-employment testing costs: Money well spent, in our humble opinion.  This testing can be skills based (computer skills tests), knowledge based (accounting knowledge tests), personality tests, or general aptitude tests.

• Selection cost:  the time spent by your staff deciding which candidate best fits the job description.

These costs, although varied, should be the easiest to quantify because it's somewhat simple to compute advertising costs, employment testing costs and to put a number on the personnel hours spent screening and interviewing candidates.   In comparison, the cost of a lost customer or missed sales opportunity ("Vacancy Costs") might be a bit harder to quantify.