Recruitment Costs
Expenses associated with hiring: advertising, agency fees, interview time, training.
Formula
Recruitment Cost per Hire = Total Recruitment Spend ÷ Number of Hires
Real World
Amazon's high warehouse staff turnover means it spends billions annually on recruitment and training — a major driver behind its investment in automation to reduce headcount dependency.
Exam Focus
When 'evaluate' appears, weigh recruitment costs against the cost of NOT recruiting (lost productivity, overworked staff).
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