Recruiting costs are usually unclear and underestimated. It is seen as an inefficient department, but it doesn’t have to be.
This In-House Recruiting Costs Calculator will help to help you understand the spending in your recruitment department. It sums the salary costs of your recruitment department plus the cost of the tools used to source candidates, creating an overall estimate of your spending.
Note: This calculator and its automated numbers are related to the German market.
Vacancy costs are the estimated losses in revenue that a company’s faces due to vacancies and describes the business impact of the shortage of skilled workers. Today, many organizations tend to have a strong focus on cost minimization, overlooking the potential long-term and negative impact of how they handle vacancies. Consequently, there is a discrepancy between understanding a vacancy as saving costs or as an investment.
Unresolved personnel issues are widely spread among German medium-sized businesses. As a result, companies suffer from lost sales, unmanageable workloads and an overall reduction in productivity and profitability. At first glance, savings in salaries, overheads and benefits seem to increase the company’s turnover. However, a profound confrontation with the issue quickly reveals that the opposite is the case.
Problems with vacant positions become increasingly significant, depending on the relevance of a position for a company. If, for example, a company is struggling with deficiencies or problems in sales, such a vacancy is more severe than in a stable situation. This is why it is extremely vital to analyse the economic consequences of the lack of an efficient employee in key positions within your company.