by Guy-Michael Homa

Created on: December 10, 2009

Organizational Staffing Costs – Considerations and Assessing Options

Staffing human capital is probably the most challenging and time-consuming task faced by any organization.  It can also be a very expensive endeavor.  Human Capital refers to the stock of skills and knowledge people bring to a job resulting in economic value.  Without good people, all enterprises cannot effectively pursue their goals and achieve objectives.  People are the essential organizational ingredient to make things happen.  Even if a business activity is automated, people are nonetheless required to monitor and control the system – and make decisions.

Recruiting good people is a difficult managerial endeavor because of the considerable amount of effort required to attract and evaluate candidates.  Resources are put in play to advertise a job opening.  A job description must be written to outline occupational requirements.  Resumes are screened and interviews are established.  Skills are assessed to ensure the person is competent enough to perform their delegated functions.  The assessment period takes time.  Hiring authorities must evaluate each candidate carefully for assurances that organizational goals can be achieved from contributions of the new hire.  Target objectives are delayed and often static during the recruiting process.  There is partial progress, even none at times, until staffing is optimized with able people to carry out assigned duties - and at expectation levels.

Sources for attracting recruits are many.  Job boards, professional recruiters, classified ads, and more are all used to attract candidates; this takes time as previously stated, but it also carries a cost – and there are no guarantees the right candidate will be found in optimal time.  For example, the cost to post a single job on a job board can cost up to $1,000.00 US for a 30-day period.  Professional recruiters charge a fixed fee or a percentage of the new hire’s salary.  Even if good candidates are found, they may reject the job offer for various reasons, including money.  Compensation is an additional staffing challenge and can determine the quality of the candidate.  As the old saying goes…“You Get What You Pay For”.  On one side, the organization has budget guidelines.  The candidate, on the other hand, has salary expectations.  Both parties must

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