While operational excellence is at the center of a successful Talent Acquisition function, cost efficiency and cost allocation are playing a similarly important role in driving HR transformation.
While traditionally recruitment costs were to a large degree absorbed by general HR budgets, they are actually variable costs that could be allocated to their causing cost centers. The external cost of recruitment can quite easily be accounted for the related cost center; however, organizations struggle to do the same with their inhouse recruitment overheads. In addition, the risk of recruitment volatility and the cost of up- and downsizing the recruitment overheads according to the needed capacity are very often not considered at all.
Converting Fixed to Variable Cost
Our Talent Acquisition solutions operate with clear, transactional-based price tags that are linked to performance. This ensures a high acceptance in your organization. Our commercial models allow you to transfer fixed costs from HR overhead budgets into variable costs that are charged to the actual cost centers which are hiring, following the cost-by-cause principle. At the same time, this enables reliable recruitment cost forecasting based on headcount plan and turnover ratios.