People Development Systems Limited - human resources mysteries revealed

Accounts Payable Clerk [How do your recruitment costs compare]			Likely Costs
			From [low]	To [high]
Likely cost of effective recruitment Potential Cost of Ineffective Recruitment [triple the above estimation - made up of the above costs x2; plus a heavily weighted penalty for potential loss related to productivity, customer relationships, staff morale etc etc]			$4250 $12750	$27700 $83100
Recruitment Cost Component	Time/ Number	@	From [low]	To [high]
Preparation
Position review etc [1 staff]	1-2 hrs	$100/hr	$100	$200
Job analysis etc	1-2 hrs	$50/hr	$50	$100
Job descriptions/ profiles	1-2 hrs	$50/hr	$50	$100
Preparation administration	1-2 hrs	$50/hr	$50	$100
Subtotal			$250	$500
Sourcing
Newspaper advertising	2 -3 inserts	$500/insert	$1000	$1500
Internet advertising	1-2 months	$250/month	$250	$500
Internal admin costs [writing & placing adverts]	1 - 2 hours	$50/hr	$50	$100
Subtotal			$1300	$2100
Assessing
Interviewing Time	12 - 16 hours	$50/hr	$600	$800
Testing	0 - 3 candidates	$250ea	0	$750
Short listing [2 staff involved]	2 - 3 hours	$100/hr	$200	$300
Subtotal			$800	$1850
Making and communicating the Selection Decision
Consultation & review [2 staff	2 - 3 hours	$100/hr	$200	$300
Candidate communications	2 - 3 hours	$50/hr	$100	$150
Communication admin.	2 - 3 hours	$50/hr	$100	$300
Subtotal			$400	$750
New Employee Orientation & Training
New employee induction	10 - 15 staff hrs	$50/hr	$500	$750
On-the-job training	20 - 40 hrs	$50/hr	$1000	$2000
Subtotal			$1500	$2750
Other/Hidden Recruitment Costs
Employee relocation	Between cities	n/a	0	$10000
Lost business/customers	1 lost customer	n/a	0	$5000
Distraction	90% productivity	n/a	0	$1000
Subtotal			0	$16000
Recruitment Consultant Fees
Based on wage %	$30000 salary	12.5%	0	$3750
Likely Cost of Effective Recruitment			$4250 [low]	$27700 [high]

Factory Worker [How do your recruitment costs compare]			Likely Costs
Factory Worker [How do your recruitment costs compare]			From [low]	To [high]
Likely cost of effective recruitment Potential Cost of Ineffective Recruitment [ triple the above estimation - made up of the above costs x2; plus a heavily weighted penalty for potential loss related to productivity, customer relationships, staff morale etc etc]			$2190 $6570	$11780 $35340
Recruitment Cost Component	Time/ Number	@	From [low]	To [high]
Preparation
· Position review etc [1 staff]	.5 - 1 hr	$40/hr	$20	$40
· Job analysis etc	.5 - 1 hr	$40/hr	$20	$40
· Job descriptions/ profiles	.5 - 1 hr	$40/hr	$20	$40
· Preparation administration	.5 - 1 hr	$40/hr	$20	$40
Subtotal			$80	$160
Sourcing
· Newspaper advertising	1 -2 inserts	$350/insert	$350	$700
· Internet advertising	n/a		0	0
· Internal admin costs [writing & placing adverts]	1 - 2 hours	$40/hr	$40	$80
Subtotal			$390	$780
Assessing
· Interviewing Time	8 - 10 hours	$40/hr	$320	$400
· Testing	0 - 3 candidates	$150 ea	0	$450
· Short listing [2 staff involved]	1 - 2 hours	$40/hr	$40	$80
Subtotal			$360	$1030
Making and communicating the Selection Decision
· Consultation & review [2 staff]	1 - 2 hours	$80/hr	$80	$160
· Candidate communications	1 - 2 hours	$40/hr	$40	$80
· Communication admin	1 - 2 hours	$40/hr	$40	$80
Subtotal			$160	$320
New Employee Orientation & Training
· New employee induction	10 - 15 staff hrs	$40/hr	$400	$600
· On-the-job training	20 - 40 hrs	$40/hr	$800	$1600
Subtotal			$1200	$2200
Other/Hidden Recruitment Costs
· Employee relocation	Between cities	n/a	0	0
· Lost business/customers	1 lost customer	n/a	0	$5000
· Distraction	90% productivity	n/a	0	$1000
Subtotal			0	$6000
Recruitment Consultant Fees
· Based on wage %	$25000 wage	5%	0	$1250
Likely Cost of Effective Recruitment			$2190	$11780

Sales Manager [How do your recruitment costs compare]			Likely Costs
Sales Manager [How do your recruitment costs compare]			From [low]	To [high]
Likely Cost of Effective Recruitment Potential Cost of Ineffective Recruitment [triple the above estimation - made up of the above costs x2; plus a heavily weighted penalty for potential loss related to productivity, customer relationships, staff morale etc etc]			$9380 $28140	$66750 $200250
Recruitment Cost Component	Time/ Number	@	From [low]	To [high]
Preparation
· Position review etc [2 staff]	1 - 2 hrs	$100/hr	$100	$200
· Job analysis etc	1 - 2 hrs	$50/hr	$50	$100
· Job descriptions/ profiles	1 - 2 hrs	$50/hr	$50	$100
· Preparation administration	1 - 2 hrs	$50/hr	$100	$100
Subtotal			$300	$500
Sourcing
· Newspaper advertising	2 - 3 inserts	$1000/insert	$2000	$3000
· Internet advertising	1 - 2 months	$250/month	$250	$500
· Internal admin costs [writing & placing adverts]	2 - 4 hours	$50/hr	$100	$200
Subtotal			$2350	$3700
Assessing
· Interviewing Time	20 - 25 hours	$100/hr	$2000	$2500
· Testing	2 - 3 candidates	$500ea	$1000	$1500
· Short listing [2 staff involved]	2 - 3 hours	$150/hr	$200	$450
Subtotal			$3200	$4450
Making and communicating the Selection Decision
· Consultation & review [2 staff]	2 - 3 hours	$150/hr	$300	$450
· Candidate communications	2 - 3 hours	$100/hr	$200	$300
· Communication admin	2 - 3 hours	$50/hr	$100	$150
Subtotal			$600	$900
New Employee Orientation & Training
· New employee induction	20 - 25 staff hrs	$80/hr	$1600	$2000
· On-the-job training	20 - 40 hrs	$80/hr	$1600	$3200
Subtotal			$3200	$5200
Other/Hidden Recruitment Costs
· Employee relocation	Between cities	n/a	0	$25000
· Lost business/customers	1 lost customer	n/a	0	$10000
· Distraction	90% productivity	n/a	0	$5000
Subtotal			0	$40000
Recruitment Consultant Fees
· Based on wage %	$80000 wage	15%	0	$12000
Likely Cost of Effective Recruitment			$9380	$66750