Personnel cost to perform the process group "recruit, source, and select employees" per $1,000 revenue

This measure calculates personnel cost per $1,000 revenue to perform the process group "recruit, source, and select employees." Activities in this process group include new hire requisition, recruiting, candidate tracking/screening, pre-placement verification, and new hire/re-hire processing. Personnel cost includes employee salaries/wages, bonuses, benefits etc. This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the process "recruit, source, and select employees."

Benchmark Data


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Measure Category:
Cost Effectiveness
Measure ID:
Total Sample Size:
2,903 All Companies
Key Performance

Compute this Measure

Units for this measure are dollars.

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Personnel cost to perform process group "recruit, source, and select employees" / (Total business entity revenue * 0.001)

Key Terms

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Total Annual Revenue/Net Revenue

Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

Personnel Cost

Personnel cost is the cost associated with personnel compensation and fringe benefits of employees (i.e., those classified as FTEs which includes both full-time and salaried/hourly employees) contributing to each respective process. Personnel cost should include all of the following costs.

Employee Compensation: Includes salaries and wages, bonuses, overtime and benefits.

Fringe: Includes contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, and stock purchase plans. This should also include special allowances, such as relocation expenses and car allowances.

Cost Effectiveness

Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.

Full-time Employee, Part-time Employee, and Temporary Employee

Full-time Employee

For the purpose of this survey, a regular full-time employee is hired for an indefinite period of time and is normally scheduled to work forty hours per week. Appointment is continuous, subject to satisfactory performance and availability of funding.

Part-time Employee

For the purpose of this survey, a regular part-time employee is hired for an indefinite period of time and is scheduled to work less than forty hours per week.

Temporary Employee

A temporary employee is employed for a finite period of time, to fulfill a time-limited role, or to fill the role of a permanent employee who is absent from work. The length of time an employee can work for the organization and be considered a temporary employee may be governed by employment legislation.

Measure Scope

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Cross Industry (7.3.0)

  • 7.2.1 - Manage employee requisitions (10439) - Handling the requirements for new employees. Create and open job requisitions by clearly defining the job descriptions. Post these requirements internally and externally, and modify them as appropriate. Manage the dates of the whole requisition process.
    • - Align staffing plan to work force plan and business unit strategies/resource needs (10445) - Creating a correspondence between the plan for hiring new employees and the desired employee requirements. Staff an adequate amount of people with the appropriate skills to effectively accomplish its legislative, regulatory, service, and production requirements.
    • - Develop and maintain job descriptions (10447) - Creating descriptions for job requisitions. Define the normal components of a job description, such as the overall position description with general areas of responsibility listed, essential functions of the job described with a couple of examples of each, required knowledge, skills, abilities, required education and experience, a description of the physical demands, and a description of the work environment.
    • - Open job requisitions (10446) - Developing specific job requisitions, and ensuring their accessibility. Create and open a job requisition to fill the vacant positions within the organization. Clearly describe the job title, department, fill date, and the requisite skills and qualifications for the job.
    • - Post job requisitions (10448) - Posting and advertising job descriptions. Display open job descriptions internally and externally. Use public portals, online portals, and websites to upload these requisitions in order for applications to be received.
    • - Modify job requisitions (10450) - Making the necessary alterations to job requisitions. Revamp or revise the job requisitions in case a position is filled or is not vacant anymore, as well as in case of any new openings. (It involves Manage the internal/external job posting websites [10449] to make the necessary changes.)
    • - Notify hiring manager (10451) - Informing and communicating with the hiring manager. Notify the manager responsible for the hiring process in cases of any new position openings or changes.
    • - Manage requisition dates (10452) - Determining and managing the dates for the employee requisition process.
  • 7.2.2 - Recruit/Source candidates (10440) - Recruiting new candidates for deployment across various functional areas inside the organization. Select methods for sourcing new employees. Manage relationships with third-party agencies. Stage recruitment fairs and drives. Manage employee referral programs.
    • - Determine recruitment methods and channels (10453) - Defining the methods and channels for recruitments in order to maximize the amount of candidate availability. Use channels such as headhunting, job postings, job portals, networking websites, and media advertising. Choose from the various methods of recruitment such as internal/external third-party sourcing.
    • - Perform recruiting activities/events (10454) - Organizing and executing recruiting activities and events. Activities and events include on-campus hiring, refresher courses, information sessions, career fairs, etc. to increase the coverage of the sourcing in order to ensure that the most deserving and appropriate candidates are hired.
    • - Manage recruitment vendors (10455) - Establishing and maintaining relationships with recruitment vendors (suppliers). Create and maintain relationships with third-party agencies such as staffing and firms to expand. Use these relationships to implement the sourcing process effectively.
    • - Manage employee referral programs (17047) - Creating and managing a recruiting strategy where current employees are rewarded for referring qualified candidates for employment.
    • - Manage recruitment channels (17048) - Establishing and maintaining channels for recruiting. Extract the best out of every recruitment channel. Manage all the processes related to all the sourcing channels.
  • 7.2.3 - Screen and select candidates (20123) - Evaluating and selecting potential employees through interviews, tests, etc.
    • - Identify and deploy candidate selection tools (10456) - Identifying and implementing tools for the selection of candidates. Recognize candidate selection tools such as screening, telephone interviews, hiring manager interviews, drug testing, and skills assessment. Effectively deploy these tools to check if the candidates fit in the workplace or not, as well as to ensure workplace safety.
    • - Interview candidates (10457) - Assessing the candidates by their performance in the interviews. Conduct HR interview, technical interview, hiring manager interview, etc. Understand the mindset of the candidate, and comprehend his/her personal and professional lives.
    • - Test candidates (10458) - Examining the candidates through tests. Prepare tools such as aptitude, technical, and grammar tests. Test the skills of the candidate through a written, oral, or computerized test.
    • - Select and reject candidates (10459) - Approving the deserving candidates, and rejecting the others. Examining the performance of candidates. Ensure candidates would fit well with the organization. (Assess performance from Interview candidates [10457] and Test candidates [10458].)
  • 7.2.4 - Manage new hire/re-hire (10443) - Creating and making job offers to the selected candidates. Fairly negotiate the job offers. Agree on terms with the candidate to complete the hiring process.
    • - Draw up and make offer (10463) - Compiling job-related information for the selected candidates in order to make up a job. Include information about the job description, reporting relationship, salary, bonus potential, benefits, and vacation allotment.
    • - Negotiate offer (10464) - Negotiating an offer with selected candidates. Discuss the job offer with the candidate to ensure a mutual understanding.
    • - Hire candidate (10465) - Wrapping up the process for hiring candidates. Agree to all hiring terms and conditions. Have the candidate accept and sign the job offer.
  • 7.2.5 - Manage applicant information (10444) - Creating and maintaining a system for managing the information of applicants. Create records for all candidates who apply. Maintain and track information through the use applicant-tracking systems.
    • - Obtain candidate background information (10460) - Conducting a background investigation on the candidates with the objective of looking up and compiling criminal, commercial, and financial records.
    • - Create applicant record (10466) - Creating and documenting the records of all applicants. Manage all individual applicants, including hires and non-hires. Maintain records to avoid any duplication and promote efficiency.
    • - Manage/track applicant data (10467) - Keeping track of all the information about the candidates who apply for jobs. Use applicant-tracking systems that can be accessed online as a central location and database for recruitment efforts.
      • - Complete position classification and level of experience (20124) - Identifying the requirements for the position to be filled. Determine the experience and skills necessary to perform the tasks outlined.
    • - Archive and retain records of non-hires (10468) - Retaining and storing the records of the candidates who were rejected and not hired to ensure future availability in case the need arises. Create a centralized repository of profiles. Label these records in order to readily identify them. Add remarks for any future consideration.