The recruitment process starts with the recruitment budget. The recruitment and staffing is not a cheap activity, and it consumes a large proportion of the global HR Budget. The recruitment budget has to be properly planned as the Finance guys love to stretch and cut it.
The recruitment budget has to be prepared in a high detail, and it cannot be prepared quickly. It needs many meetings to reach the consensus about the recruitment initiatives to be run during the following year.
Recruitment Budget Planning
The recruitment budget is always connected with the number of planned and unplanned vacancies in the next year. A strong HR Function can predict the planned vacancies based on the corporate strategy and feedback from managers. The HR Business Partners should sit together with managers, and they should plan the development of units in the organization. The planned vacancies can be identified then.
The HR Recruiters should be able to set the expected costs of the HR Marketing activities and different contributions to universities. The universities usually charge a fee for membership in their young graduates programs. They charge fees for the identification of best talents among students.
The recruitment budget also covers other costs like the Background Check. It has to be included for all vacancies.
Recruitment Planning Process
The recruitment budget planning is not hard. The experienced HR Recruiter can manage whole HR Team to deliver the necessary inputs to set the recruitment budget correctly.
HR Business Partners should deliver the planned vacancies and HR Recruiter should identify the right recruitment sources to be used. The planned vacancies are usually expensive as they are about specialist and managerial job positions.
The unplanned vacancies should be planned on the basis of the running rate through the current year. The HR Recruiter can expect the same turnover as the organization keeps its operation.
The promotion activities should not change dramatically from year to year and their costs should be known. The university recruitment is usually no topic for the management and the Finance guys.
Last, the fees for the recruitment software and recruitment website fees should be added. The recruitment budget is completed.