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Traditional Recruiting Costs

Costs of an Open Position is Higher than a Filled Position

According to JDA Professional Services, Inc., a staffing firm's survey "Replacing Your IT Staff May Cost More Than You Think" finds that the total cost of an open position is higher than a filled position in the United States. According to the president of JDA, James Del Monte, Canadian estimates of these costs are very similar. The following costs are estimated in the US and it is indicated that the Canadian costs are also similar:

Direct Costs of Hiring

Placement fee $18,000
Interview cost $3,000
Training cost $5,000
Ads $5,000
Relocation $10,000
Signing bonus $5,000
Overtime $5,000
Admin expense
Legal fees

Indirect Costs of Hiring

Consulting fees $30,000
Contractor fees
Lost Revenue $150,000
Project slippage
Lost Training $5,000
"Ramp up" time $19,500
Department Image
Employee Stress
Learning curve
Project paybacks

Total $48,500 (US)Sub-total $204,500 (US)