Where Your Recruiting Budget Should Go

Planning a recruiting budget can seem like a daunting task, but it doesn’t have to be difficult. Having a plan in place will help make the process go by much faster, and will ensure that every aspect of the process is accounted for. By creating a simple spreadsheet, one can keep track recruiting costs that add up throughout the year.

Keeping a pristine budget is key for a successful work year, with systematic record-keeping a must, according to Workable. A template can make a world of a difference. Here’s our advice on where your recruiting budget should go.

Who Does The Budget?

Generally, the Human Resources department is the one in charge of the recruiting budget. A specific amount of money is allocated to every hiring manager who’s expected to inform HR about every expense for approval and record-keeping purposes. If there’s no HR department, then financing and accounting will be the ones keeping track of everything.

Spreadsheet Expense Categories

There are several main categories on the typical recruiting expense sheet, which include:

  • Job Boards & Advertising – This pertains to any expense associated with posting your open position as you source candidates. Each job board should be included; for example, if you’re using LinkedIn premium for job recruiting, it should be recorded.
  • Assessment – This part includes any kind of candidate assessments your company pays for, like tests or competitions. Companies often buy tests from consultancies or other firms to use during the hiring process. The cost varies per candidate.
  • External Recruiting – This has to do with any external recruiting costs. Sourcing software can also fall under this category.
  • Employer Branding Events – This falls separate from marketing efforts. This must include costs directly associated with recruiting. Career fairs, recruitment events and conferences are the most common examples of external recruiting.
  • Careers Page – Having an easy to direct career page is important. Associated costs include development, maintenance or redesign expenses. These costs can be allocated to an external service or the salary of an in-house employee.
  • Partnerships– Partnering with a university or another institution can go a long way. It’s a good way to source candidates that aren’t cheap. This includes paid affiliations and partnerships directly related to your recruiting efforts.
  • Salary Costs of Your Hiring Team – This part is high cost and it’s challenging to calculate. It’s important to keep track of this expense and take steps to minimize it. Since high level employees are often involved in the interviewing process, make sure it’s worth their effort and time.

In addition, make sure that your agency’s overall budget has room for a comprehensive employment agency insurance program that includes key coverages such as Direct Hire, Professional Liability, and Employment Practices Liability.

 

About World Wide Specialty Programs

For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (800) 245-9653 to speak with one of our representatives.

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