Journal of Strategic Human Resource Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

A Model for Recruitment Process Costs in the Indian IT Industry


Affiliations
1 Management Science, School of Business, Alliance University, Karnataka, India
2 School of Business, Alliance University, Karnataka, India
     

   Subscribe/Renew Journal


The present study analyses the costs associated with the recruitment process in Indian information technology companies. Recruitment costs include all the expenditure that organisations make towards hiring candidates as employees, including cost of contacting candidates, travel costs of the human resource unit, the direct and indirect logistics involved, the cost incurred to conduct tests, interviews, and so on.
This study contributes to the literature in two ways. First, it proposes a model for recruitment process costing using the beta distribution, akin to the project evaluation and review technique (PERT) model. Second, it suggests that the overall recruitment process time also follows a beta distribution, due to the high correlation between the sub-process times.
The proposed model is used to compare the overall recruitment process times for different target profiles using data collected from a sample of 50 Indian information technology companies.

Keywords

Recruitment Costs, Recruitment Sub-Processes, Normal Distribution, Beta Distribution, PERT Modelling.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Abowed, J. M., & Kramarz, F. (2003). The cost of hiring and seperations. Labour Economics, 10, 499-530.

  • Bliss, W. G. (2001). Cost of employee turnover can be staggering. Fairfield County Business Journal, 40(19), 20-21.

  • Borland, A., Frost, K., & Wright, M. (2009). Ten HR administration cost-reduction strategies for tough economic times. Lincolnshire, Illinois, USA: Hewitt Associates.

  • Boudreau, J. W. (1990). Cost-benefit analysis applied to personnel/ human resource management decisions. Cornell University Center for Advanced Human Resource Studies Working Paper Series.

  • Cania, L. (2014). The impact of strategic human resource management on organizational performance. Economia Seria Management, 17(2), 373-383.

  • Cascio, W. F. (1991). Costing human resources: The financial impact of behavior in organizations (3rd ed.). Boston, Massachusetts, USA: PWS-KENT Publishing Company.

  • Cerebrus Consultants. The Indian Information Technology Industry - Human Resource practices at the turn of the millennium. Mumbai, India: Cerebrus Consultants.

  • Christofferson, R. (1977). The high cost of hiring. Library Journal, 102(6), 677-681.

  • Cooper, R. (1988a). The rise of activity-based costing- part one: What is an activity-based cost system? Journal of Cost Management, 2(2), 45-54.

  • Cooper, R. (1988b). The rise of activity-based costing - Part Two: When do i need an activity-based cost system? Journal of Cost Management, 2(3), 41-48.

  • Dolfin, S. (2006). An examination of firms’ employment costs. Applied Economics, 38(8), 861-878.

  • ERE Media Benchmarking. (2015). A Standards Recruiting Metrics List. New York, USA: ERE Media Benchmarking. Retrieved from http://media.eremedia.com/uploads/2015/09/03122304/ERE-Benchmarking-Metrics-v2.pdf

  • Garcia, B. L., & Kleiner, B. H. (2001). How to hire employees effectively. Management Research News, 24(6/7), 35-42.

  • Hansen, F. (1997). What is the cost of employee turnover? Compensation and Benefits Review, 29(5), 17-18.

  • Howden, D. (2016b). Average time to hire: key recruiting metrics to track. London, UK: Workable. Retrieved from https://resources.workable.com/blog/time-to-hire-metrics

  • Howden, D. (2016b). What is time to fill? KPIs for recruiters. London, UK: Workable. Retrieved from https://resources.workable.com/blog/recruiting-kpis

  • Lin, Y.-F., & Kleiner, B. H. (1999). How to hire employees effectively. Management Research News, 22(9), 18-25.

  • Qualigence (2012). Understanding Today’s Recruiting Metrics. Livonia, Michigan, USA: Qualigence. Retrieved from https://qualigence.com/wp-content/uploads/2012/10/Metrics-Whitepaper.pdf

  • Mercer (2015). Total remuneration survey 2015. New York, USA: Mercer.

  • Nasscom (2015). HR in the Digital Age: Annual HR Survey 2015. New Delhi, India: Nasscom.

  • Phillips, J. D. (1990). The price tag on turnover. Personnel Journal, 69(12), 58-61.

  • Sabel, J.-M. (2016). Seven Recruitment Metrics You Should Be Tracking in 2017. South Jordan, Utah, USA: Hire Vue. Retrieved from https://www.hirevue.com/blog/seven-recruitment-metrics-that-matter

  • Sanford, J. (2005). Making cents out of the hiring process. Strategic Finance, 87(6), 41-45.


Abstract Views: 451

PDF Views: 0




  • A Model for Recruitment Process Costs in the Indian IT Industry

Abstract Views: 451  |  PDF Views: 0

Authors

Mihir Dash
Management Science, School of Business, Alliance University, Karnataka, India
Nisha Gandhi Faforia
School of Business, Alliance University, Karnataka, India
Arpana Muthyala
School of Business, Alliance University, Karnataka, India

Abstract


The present study analyses the costs associated with the recruitment process in Indian information technology companies. Recruitment costs include all the expenditure that organisations make towards hiring candidates as employees, including cost of contacting candidates, travel costs of the human resource unit, the direct and indirect logistics involved, the cost incurred to conduct tests, interviews, and so on.
This study contributes to the literature in two ways. First, it proposes a model for recruitment process costing using the beta distribution, akin to the project evaluation and review technique (PERT) model. Second, it suggests that the overall recruitment process time also follows a beta distribution, due to the high correlation between the sub-process times.
The proposed model is used to compare the overall recruitment process times for different target profiles using data collected from a sample of 50 Indian information technology companies.

Keywords


Recruitment Costs, Recruitment Sub-Processes, Normal Distribution, Beta Distribution, PERT Modelling.

References