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Recruiting Formulas

Submitted by cmiller on Wed, 2006-09-13 08:24.

Good morning everyone!

I'm looking for a couple of simplified formulas to help with the justification in my business case to bring recruiting in house.

If anyone has formulas for the following, please let me know;

Turnover - Average cost p/position (stats use to state that it was $25k for a jr position upto $35k for a more sr position, non-mgmt - is this still the case?)

Recruitment cost - besides the agency, advertising, job boards fees?

Thanks!

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A loaded question -- you'll need an angle to answer

Submitted by rlopez on Mon, 2006-10-30 17:37. *

Hi there,

All of the fancy numbers in the world will mean nothing unless it is of interest to your stakeholders. What are they looking for -- cost? Efficiency? Speed? Strong Competency? Tacit Knowledge? You will need to prioritize this and then craft your metrics and measures appropriately, positioning the most important ones first and foremost.

As a suggestion, there are some half decent books on metrics -- John Sullivan has one that you can order called HR Metrics (if I'm not mistaken).

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Where does the formula start?

Submitted by rmatthews on Tue, 2006-10-03 07:44. *

The evolution of recruiting metrics is really just getting started, the right “formula” is yet to be written. To add to Geoff’s comments, Paul Russ from SunLife has also spoken about metrics and their effect on the organization.

If I were making the model I would include things like, hard cost to hire (Job Boards, agencies, etc.), soft cost to hire (recruiter time, financial impact of the empty position), on boarding costs (time to profitability, training costs) and also, to steal Paul Russ’ approach, the cost of turnover (replacement cost for all of the aforementioned variables).

I’m pretty sure that I have left no answer on the table, but I hope I left some thought to help you add all the right variables to find the right equation for your organization.

Have fun,
Richard

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Recruitment formulas

Submitted by gramey on Mon, 2006-09-25 09:19. *

cmiller,

Ann Barrett has written a couple articles and had some posts on recruitment metrics. Perhaps review some of her writings, or see if you can get in touch with Ann directly to see if she can help you out a bit.

Also, Shane Creamer has had some hands on experience in moving recruiters out-of-house. Perhaps he can be a lead for some information that you might be able to reverse engineer to make an argument for bringing resources in-house.

In addition to those two as resources, I can offer a few additional comments of my own. The first assumption I will make is that you DO in fact need to bring recruitment in house - and this it is not just cost related? Assuming also that it was formerly in house at some point, do you know the history and decision making on outsourcing it in the past? Being armed with that information could help fuel your business case.

Although bottom line metrics are often what you need to prove the worth, I would also make sure that you build some of the less tangible ROI's into your business case. Things like hiring employees who fit better and are retained longer because your in house recruiters might know the culture better and can better asses those things. Perhaps an increase in offer to hire ratio if there is a stronger relationship between company recruiter, candidate and hiring manager. I'm sure I could go on here, but the point is to focus on things other than the numbers as well (once you have a strong case using the numbers).

Finally, as you chose which metrics are going to be part of your business case, be prepared to continue measuring these over time. The business is going to ask you to show the value of your new in-house team and why it is better than the outsourced solution that existed before. Ensure you have built timing for your ROI into your business case - realistically showing an expectation as to when your new structure will be equal to or better than the old way.

Hope that helps. Good luck. (And don't forget to post here somewhere when you look to hire that new internal team!!!)

Geoff.

Geoff Ramey | Xstrata | Phone : 416.982.3951 | Fax : 416.982.7316 | Email : geoff.ramey@xstrata.ca | Web : www.xstrata.com

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