Operational excellence may be at the center of a successful Talent Acquisition function but cost efficiency and allocation are playing a similarly prominent role in driving HR transformation.
In a “traditional” model, recruitment costs are absorbed by general HR budgets. In reality, they are variable costs that can and should be allocated to identified cost centers. Whereas an external recruitment cost can easily be applied to its related cost center, organizations struggle to be as precise with their in-house recruitment overheads. In addition, recruitment volatility and the cost of adapting to the needed recruitment overheads are rarely taken into the calculation.
Converting Fixed to Variable Cost
Our Talent Acquisition solutions operate with clear, transaction-based price tags that are linked to performance, ensuring optimal acceptance in your organization. Our commercial models allow for the transfer of fixed costs from HR overhead budgets to variable costs that can be charged to specific cost centers, the cost-by-cause principle. This approach also enables reliable recruitment cost planning, based on headcount forecasts and turnover ratios.