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£5k is average hidden cost of recruitment

March 2007 – Recruitment consultancy Angela Mortimer has revealed that the average hidden cost associated with recruiting a new employee is over £5,000.

The findings come from the organisation’s own Cost of Recruitment Calculator which was developed to allow employers to monitor the cost-per hire of new staff, with the aim of helping them meet their recruitment needs on time and within budget. The software takes both the hard (e.g. advertising rates and recruitment consultancy fees) and soft (e.g. management time spent sifting through CV’s or cost of existing staff shouldering extra responsibilities while awaiting arrival of new staff member) costs into consideration and quantifies the total cost of recruitment by inputting the relevant factors.

Most employers currently do not measure the cost of recruitment, according to the Recruitment Confidence Index released this week by the Cranfield School of Management and Personnel Today. The index reveals that employers are throwing money at recruitment without measuring the return on their investment with less than half of the 500 organisations surveyed evaluating the success of their recruitment processes.

Ashley Williams, Director of Partnership Products at Angela Mortimer says:

“The recruitment process can be a costly one for a business involving both tangible and intangible costs affecting the company’s overheads and productivity. It is surprising to find how frequently the difficult to measure intangible costs exceed hard cost expenditure.

“The Cost of Recruitment Calculator is designed to help businesses to ensure that the recruitment process is as effective as possible and on average sees them making a process saving of 30%. By using the software to identify an employer’s current cost-per hire and how their recruitment needs can be met, organisations can make improvements on their processes, save money and enhance their chances of securing the best people.”

Consultants from Angela Mortimer applied the calculator to CASS Business School, part of London’s City University. CASS was spending over £175,000 a year on recruitment.

HR Director Richard Farmer comments:

“It was useful to establish how much we actually spend on recruitment. This helped us to identify areas where we could improve our efficiency. Working with Angela Mortimer, we were able to streamline our recruitment processes, reducing the time to fill a vacancy.”


For more information, or a regional breakdown of results, please contact:

Heather Baker/ Jeanne Fourie
hbl media
Tel: 020 7612 1830
Email: /

About Angela Mortimer plc

Founded in 1976, Angela Mortimer plc is Britain's leading quality recruitment consultancy. With over 200 consultants in the group, it provides support staff to the UK's leading companies and individuals. The company has four offices in London, and others in Birmingham, Bristol, Nottingham, Manchester, Paris and Brussels.

Other companies within the Angela Mortimer group include Pathfinders Media Recruitment, Design Studio People, Knightsbridge Recruitment, Katie Bard Birmingham & Nottingham, Goddard Gadd, Elizabeth Gadd, Annabelle Gadd, AMTech IT Staffing, AM Legal, AM International, PA Search, HR Counsel, AM Finance, Ruth Halliday Associates, Progresis - Paris, Femmes et Carrières - Paris, Excel Careers - Brussels, Excel Interim - Brussels.