How Much Does Hiring Cost?
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This document compares the time and costs associated with hiring an accounting manager through a recruitment agency versus doing it yourself. Hiring through an agency would cost around $15,000-20% of the manager's $75,000 salary but would take less time, around 13 hours total. Doing it yourself would cost less, around $4,000, but would take much longer, around 23 hours total, requiring you to screen resumes, conduct interviews, and more. The document suggests that using an agency may be a better option if time is critical to filling the open position quickly.
How Much Does Hiring Cost?
- 1. $ 4 h $188 HIRING WINE & DINE CANDIDATES4 $ 2 h $94 RECRUITER DOES THE WORK!2 $ 7.4 h $348 4 $ $18,750 PRE-SCREENING & CONDUCTING INTERVIEWS3 FIND & HIRE A RECRUITER YOU DON'T HATE1 REVIEWING RESUMES 2 Using a Recruitment Agency The True Cost of Your mission, should you choose to accept it: You, the hiring manager, must ?nd the ideal accounting manager in the shortest time possible. Dont know where to start? Dont worry C this will help. Depending on how much time & money you can afford, you have two options. Choose wisely - the stakes are high. Hiring$$ Whats Your Time Worth? WRITING THE JOB DESCRIPTION & POSTING ADS FOR 3 MONTHS Hiring by Yourself Your Competing Priorities The average manager in the US makes $90,000/year Hourly wage: $47 This is you You must juggle regular work & hiring. You must ?ll the vacant job position ASAP. You have a limited hiring budget. Average # of days to ?ll a position: 95 days Accounting Manager average salary: $75,000/year ? FACTS ? 1 $ LinkedIn Ad $1,500 Job titles $1,257 CareerBuilder Ad $675 Monster Ad $225 Craigslist Ad $117.50 2.5h Post a Job Ad $95 Facebook Ad $47 3.5 h $3,991.50 Write Ad Copy Respond Seen by Hiring Manager Interview Job Offer Final Interview 1h $ 3.6 h $169.20 300 200 4 8 1 Start/end dates Previous Companies Education PRE-SCREENING & CONDUCTING INTERVIEWS TIME THE REAL QUESTION Is there a win-win situation when it comes to both costs and time spent on hiring? MONEY 3 $ 12.15 h $571 $ 4 h $188 Recruitment agencies usually charge companies a hiring fee of approximately 15%-30%. In this case, you need to hire an accounting manager with an annual salary of $75,000. Youd expect to pay ~20% of that salary. 15-30% $75,000 -20% HIRING WINE & DINE CANDIDATES 23.3 h $4,920 $19,380 13.4 h Using a Recruitment Agency Hiring by Yourself Overall Time & Cost Overall Time & Cost Overall Time & Cost Overall Cost Overall Time & Cost Overall Time & Cost $ HIRING FUNNEL x2 REFERENCES Salary of manager http://www.glassdoor.com/Salaries/average-manag er-salary-SRCH_KO8,15_IP5.htm 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-?ve-pro?les-most- often-sought-after-by-companies/noticia 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 Facebook job posting costs http://moz.com/blog/1-dollar-per-day-on-facebook- ads Craigslist cost http://www.craigslist.org/about/help/posting_fees How long it takes for job positions to be ?lled 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-get- a-job-recruiting-explained-by-the-numbers/ Reference infographic http://www.huf?ngtonpost.com/2012/06/04/the-tr ue-cost-of-hiring-infographic_n_1568295.html Traditional recruitment process http://?ylib.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.?ndthebest.com/q/61/1088/Wh at-is-the-cost-per-month-to-post-a-job-listing-on-C areerBuilder-com-job-website