WHAT CONSTITUTES RECRUITMENT BUDGET

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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,Shin
  e, 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 candidates CTC.
• Hiring agencies and negotiating can be done in a
  cost effective and non-hassle way through a few
  recruitment software.

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Referral bonus is the incentive given to
employees for referring candidates to fill job
openings. It is given as a percentage of the
candidates 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 candidates 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.