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FAQ-What should be included in a recruitment budget?

Date: April 3 2001

FAQ - What should be included in a recruitment budget

FAQ - What should be included in a recruitment budget?


Q.   I am trying to determine the types of costs that a recruitment department generally encounters, so that I can create a recruitment budget.   What things should I keep in mind?


A.   Below is a list of cost categories that should be taken into consideration when you are developing your budget.   It is important to remember that costs and what/how things are budgeted varies depending on the organization.


Advertising Costs


You should take into consideration the amount of money you will be spending on advertising throughout the budget period.   This should include:


  • Print
  • Television
  • Radio
  • Job Fairs
  • Online Services


Agency Costs


If your organization uses search firms, employment agencies, or contract/outside recruiter, than you should allocate a portion of your budget to these types of costs.  


Travel Costs


Travel costs for recruiters and reimbursed travel costs for candidates should also be taken into consideration. This can include travel to and from career fairs or mileage reimbursement for going to and from off site interviews.


Relocation Costs


This category covers the amount of the budget allocated for the relocation of new hires.   Some of the factors to consider for this area of the budget are:


  • House Hunting Costs
  • Moving Expenses
  • Mortgage Difference Differentials
  • Temporary Housing
  • Closing Costs
  • Agency Fees
  • Miscellaneous Expenses


Referral Bonus


If your organization has a referral bonus program you should budget money for it.  


Internal Recruiter Costs


The salary and benefits for internal recruiters should also be budgeted for.   This area generally covers just those directly involved in the interviewing and hiring activities and does not generally include administrative staff.  


Sign-On Bonus


If your organization provides employees with sign on bonuses you should also budget for this category.


Testing Costs


If screening tools or tests are used during the recruitment process, they should also be considered when developing the budget.




An additional 10% of the total should be allocated for miscellaneous costs.



Source:   Saratoga Institute:   Human Resources Financial Report (1999)


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