However, the true cost of recruitment may be far greater than you realise. If you include management and administrative time within your organisation, the cost of the recruitment process is even higher. So what is the real cost of recruitment and at what point will your organisation see a return on their investment? Should you change the method of recruitment and selection, what effect will that have on your ROI?
The SHL Selection and Recruitment ROI Report Generator lets you compare the potential increases in revenue with the costs associated with various different selection strategies and assessment methods. It helps you to understand the value of the individuals in your business and how varying your selection methods can increase that value. The calculator uses standard mathematical procedures and algorithms (click 'Convince Me' for details) and is simple to use if you follow these steps:
Step 1 - Choose one general job type and then enter the number of vacancies per year.
Step 2 - Using the defaults provided look at the overall potential gain in revenue and costs associated with different strategies (single-stage versus two-stage selection; use of structured competency-based sifting versus application from sift), and also different final stage methods (use of ability tests, personality assessment, assessment centre exercises and so on).
Step 3 - Having tried the Report Generator with its default value, you might want to change the values to better suit your particular situation. For this you need to know the average salary associated with the positions you are considering, what the average period of tenure is, what you spend on advertising and other costs associated with recruitment.
Step 4 - You can also vary key variables to model ‘what if’ scenarios and explore the sensitivity of the outcomes to changes in your input values.