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 spends hundreds of millions annually on recruitment; high staff turnover in its fulfilment centres drives up costs through repeated advertising, agency fees, and induction training for replacement workers.
Exam Focus
Always link high recruitment costs to labour turnover rate — examiners expect you to show the knock-on financial impact on the business.
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