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Employee Benefits Companies must consider many personnel costs. These costs include employee benefits, such as health insurance and vacation days. What.

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Presentation on theme: "Employee Benefits Companies must consider many personnel costs. These costs include employee benefits, such as health insurance and vacation days. What."— Presentation transcript:

1 Employee Benefits Companies must consider many personnel costs. These costs include employee benefits, such as health insurance and vacation days. What are other employee benefits?

2 Lesson Objective Calculate the cost of recruiting new employees. Content Vocabulary recruiting The act of soliciting qualified people to work for a company.

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4 Talbot Manufacturing Company is searching for a person to head its production department. The personnel department placed advertisements for a total cost of $6,495, and employed Empire Executive Search Company to locate candidates. Example 1

5 Empire recommended Alice Welch, Tomas Valdez, and Cleveland Adams. Talbot paid for the candidates travel expenses (i.e., transportation, lodging, and meals) for interviews. Alice WelchTotal travel expenses: $517 Tomas ValdezTotal travel expenses: $735 Cleveland AdamsTotal travel expenses: $674 Example 1 (cont.)

6 After the interviews, Talbot hired Cleveland Adams at an annual salary of $154,900. Talbot paid these expenses to hire him. Moving expenses$3,600 Sale of home (real estate brokers fee)$9,470 Empires fee (25 percent of Adamss first salary) $38,725 Example 1 (cont.)

7 Step: Find the total recruiting cost. Advertising + Interviewing + Hiring Expenses Expenses Expenses $6,495 + ($517 + $735 + $674) + ($3,600 + $9,470 + $38,725) $6,495 + $1,926 + $51,795 = $60,216 Example 1 Answer

8 A financial services firm searched and found a senior-level investment banker. Advertising for the position totaled $12,500. The firm narrowed the search down to 3 finalists. It spent $3,890 on interviewing expenses. Example 2

9 It decided to hire Jane McNally. The firm paid $5,000 in moving expenses and a 6 percent realtors fee on the selling price of her home. The home sold for $348,000. What is the total recruiting cost? Example 2 (cont.)

10 Step: Find the total recruiting cost. Advertising + Interviewing + Hiring Expenses Expenses Expenses $12,500 + $3,890 + [$5,000 + (6% × $348,500)] $12,500 + $3,890 + [$5,000 + $20,910] $12,500 + $3,890 + $25,910 = $42,300 Example 2 Answer

11 Trebor Technology is recruiting for a programmer position that pays an annual salary of $38,000. The company spends $ in advertisements and hires the Quality Employment Agency to search for candidates. Practice 1

12 Qualitys fee is 25 percent of the first-year salary. Trebor spends $1, on interviews and hires one of Qualitys candidates. What is Trebors total recruiting cost? Practice 1 (cont.)

13 $11, Practice 1 Answer


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