Journal of Strategic Human Resource Management

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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
     

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

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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