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Cost per hire comparison for the three (3) most
common methods of recruitment.
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1.Contingency Agency
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- fee paid when a hire is made,
usually 25% or 30%.
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2.Retained search
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3.On-site recruiter
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-
Join
your company as part of YOUR team as the recruitment
specialist
-
Consult
directly with hiring managers regarding job descriptions
-
Help
determine the best marketing strategy based on your company
profile, position requirements, and time frame for filling the
open positions
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| For this example, we assume each recruit's annual
salary is $100,000, and the agency
commission rates are 25% & 30%. |
| Candidate's Salary Requirement |
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Your total cost at 25% |
|
Your total cost at 30% |
Your total cost
with BAR |
Your cost per hire at 25% and 30% |
Your cost per hire
with a BAR on-site recruiter averaging 3 hires/mth |
| 3 hires x $100K/yr = $300K in salaries |
x 25% = |
$75,000 |
x 30% = |
$ 90,000 |
|
$25K-$30K |
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| 4 hires x $100K/yr = $400K in salaries |
x 25% = |
$100,000 |
x 30% = |
$120,000 |
|
$25K-$30K |
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| 5 hires x $100K/yr = $500K in salaries |
x 25% = |
$125,000 |
x 30% = |
$150,000 |
|
$25K-$30K |
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| 6 hires x $100K/yr = $600K in salaries |
x 25% = |
$150,000 |
x 30% = |
$180,000 |
<$40,000 |
$25K-$30K |
$6,000 |
Note: In this example, we have not considered
hiring a full-time staff person to fill 6 positions as a viable
option, because to do so will mean a lay-off in a short amount of
time with all of the negative implications. Also, we have
not considered bringing in a 1099 contractor as a suitable option
due to the IRS
rules regarding the definition of a contractor.
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Contact
BAR for a no-cost / no-obligation evaluation of your
recruitment needs
Bay
Area Recruiters, Inc.
Northern
California / Bay Area
Phone:
650.465.9322
E-mail
us: info@BARecruiters.com
ã2010
Bay Area Recruiters, Inc. All rights reserved.
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