Do you know your ACTUAL recruiting costs?
Hint: They may not be what you think.
Accolo Recruiting Cost Ratio (RCR) Calculator
Accurately calculating your recruiting costs is not always a simple matter. Although many organizations use cost-per-hire to calculate the cost of filling positions, that metric doesn’t reflect your true cost of hiring.
On the other hand, calculating recruiting cost ratio (RCR) factors in all those additional ‘hidden’ costs associated with more complex, resource intensive positions requiring highly skilled professionals.
These are the kinds of factors that truly impact your bottom line.
What Should Your Recruiting Cost Ratio Look Like?
The most current data suggests that the national average for RCR is 13.9% (although our calculator currently uses 2012 statistics). Based on Accolo’s aggregate experience across 450 companies and over 50,000 hires, we’ve found it possible to consistently maintain a RCR of less than 6.5% while delighting our clients and candidates alike.
As you take a look at your own RCR, it might help you to know that the primary factors that can positively impact your RCR include:
- The ability to minimize or even eliminate contingency search fees
- Implementing a progressive, source inclusive recruitment campaign model
- Increasing the reach of your employee referral possibilities using the power of social networks
What RCR Does Not Include
While the RCR calculator is your best bet to determine your true recruiting costs, there is one other cost that’s often forgotten or ignored. The time it takes to fill key positions and the impact that can make on an organization can also be significant.
Regardless of the open job, filling a position quickly means that the work that needs to be done is getting done sooner. An open sales position that isn’t filled quickly can cost a company thousands of dollars, but non-sales positions can also become costly. When you’re understaffed or overworking your team, it financially impacts your business, customers, and overall brand.
Calculate Your RCR
As you can clearly see, there are a lot of factors that figure into your true hiring costs. The Accolo RCR Calculator was developed in cooperation with Staffing.org to help you gain a better understanding of your actual cost to make a hire. The Recruiting Cost Ratio (RCR) is more effective than traditional cost-per-hire calculation models because it factors variations in job function, skill levels, labor marketing conditions and industry variables.
Take a minute now to calculate your recruiting cost ratio for free on the right. (Orange indicates a mandatory field. “0” is a valid entry.) Remember to click “Email my results” when you are finished to request the PDF.
Once you’ve completed your RCR, then you can begin to both understand your costs and lower them. If your Recruiting Cost Ratio isn’t below 6.5%, maybe it’s time to give us a call. We’re here to help.