Download presentation
Published byValerie Holland Modified over 9 years ago
1
SECTION 13-1 Hiring New Employees pp
2
Key Words to Know recruiting (p. 424)
The act of soliciting qualified people to work for a company.
3
Formula Recruiting Expenses Expense Expenses Cost
Total = Advertising + Interviewing + Hiring Recruiting Expenses Expense Expenses Cost
4
Example 1 Taliban 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.
5
Example 1 (cont.) Empire recommended Alice Welch, Tomas Valdez, and Cleveland Adams. Taliban paid for the candidates travel expenses (i.e., transportation, lodging, and meals) for interviews. Alice Welch Total travel expenses: $517 Tomas Valdez Total travel expenses: $735 Cleveland Adams Total travel expenses: $674
6
Example 1 (cont.) After the interviews, Taliban hired Cleveland Adams at an annual salary of $154,900. Taliban paid these expenses to hire him. Moving expenses $3,600 Sale of home (real estate broker’s fee) $9,470 Empire’s fee (25 percent of Adams’s first salary) $38,725
7
Example 1 Answer 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
8
Example 2 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.
9
Example 2 (cont.) It decided to hire Jane McNally.
The firm paid $5,000 in moving expenses and a 6 percent realtor’s fee on the selling price of her home. The home sold for $348,000. What is the total recruiting cost?
10
Example 2 Answer 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
11
425: 1-17
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.