As a company, it is easy to think that there is a cost advantage by managing recruitment on your own. However, costs may not be apparent until the process is completed. We have created a cost model where we have developed the approximate cost for a company to recruit a person on their own.
Average time for a "normal" Recruitment
Mission Specification -1 hour
Ad Design and Publishing - 5 hours
Administration - 16 hours
Respond to telephone calls - 5 hours
Phone interview - 8 hours
Search - 8 hours
Booking of interviews - 3 hours
Interviews and preparation - 16 hours
References - 6 hours
Discussion and determination about chosen candidates for final interviews - 2 hours
Interview final candidates - eight hours
Negotiation and preparation of contractual agreement - 2 hours
Cost of self-recruitment:
CEO with a salary of 80 000 per month including social costs: Recruitment costs about 61 000 SEK.
Sales Manager with a salary of 50 000 per month including social costs: Recruitment costs about 39 000 SEK
Line manager with a salary of SEK 40 000 per month including social costs: Recruitment costs about 31 000 sec
Additional costs for advertising, lunches, staff meetings, etc. are not included. Also, there is no guarantee that the recruitment process is sucessful, which may initiate a restart of the recruitment mission.
