From the course: Hiring a Recruiting Firm

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Determine your budget

Determine your budget

From the course: Hiring a Recruiting Firm

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Determine your budget

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- Wouldn't it be great if you could look into your crystal ball and see exactly what hiring you'll need to do in the coming year? Of course analytics can provide some guidance, so I want to help you understand how to determine a budget based on what's predicted. I also want to help you understand how to budget for the unexpected. The type of employee you hire will have a direct impact on your budget. If you use a recruiting firm to help identify full-time employees, you'll pay a placement fee. For contractors, temps, consultants, and independent contractors, you'll pay an hourly bill rate and you won't be the employer of record. And if you have turnover in the C suite, your search will more likely be done on a retained search agreement. Retained search agreements involve payment up front for work done throughout the search and that these range anywhere from 25 to 50% of the annual salary. Now, in order to correctly forecast your cost per hire, you must track the total compensation…

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