Riya, the HR manager of TQR Solutions Limited (TQR), was taking stock of the recent recruitment drive of the company along with her team. The company had recruited 60 candidates from external as well as internal sources. Riya and her team had to work out the hiring costs and present this to the management. TQR, a leading private sector banking and financial services company with its headquarter in Mumbai, India, was planning to recruit suitable employees as it had witnessed a high employee turnover rate in the past few months. The company was also planning to expand its operations in the southern zone of the country, which would require 50 new employees in addition to 10 internal hires for lower level positions. The HR Manager of the firm along with her team evaluated different sources of online job posting such as LinkedIn, Monster.com, CareerBuilder, and Ladders and online ads in addition to the print ads and participation in career fairs. LinkedIn, being one of the most popular online tools for recruitment, was charging as much as `50,000 for a monthly job posting and a quarterly charge of `30,000 for resume access. Monster was quoting `30,000 for a monthly job posting and 8,000 per month for resume access. CareerBuilder and Ladders were relatively more reasonable and were charging `20,000 each for the monthly job posting and `15,000 each for an annual subscription to access the resumes. Similarly, participation in a career fair would cost `25000, and advertisement, both online and print would lead to a further expenditure of `50,000. However, the internal advertisement cost such as ads on notice boards, intranet of the company and interdepartmental job postings on Internet was as nominal as `10,000. The HR team finally decided to opt for Monster.com due to its huge resume database and popularity. In addition to this, the company also placed a print ad in a leading newspaper. Riya had also approached one of the leading employment agencies to generate job applications from potential recruits. The agency personnel gave an estimation of `50,000 for generating a requested number of 100 applications for different job positions specified by her. Riya was confident of getting another 100 applications through the other sources being considered by the company. Ravi, the managing director of TQR, had also agreed to Riyas proposal to announce an external referral bonus of `5,000 and internal referral bonus of `2,000 per hire. In addition to the above expenditure, the management of TQR prepared a list of other estimated cost such as salary, benefits and overhead cost for the staff and support staff to meet the manager and discuss about the sourcing, work with the agency and media, screening the applicants, calling the applicants for interviews, interviewing the candidates and checking the references, scheduling the interview with the manager after reviewing the candidates and confirming the offers. Similarly, salary and benefits had to be paid to the senior officials (managers) for their time spent on time management interviewing the candidates and making hiring decision. Though it was clearly stated by Riya that disqualified candidates would spend only one day for their interview and declaration of results and the selected candidates would spent two days for interview and other related documentation Short Case 1: TQR Solutions and formalities, the staffing team consisting of 12 members (5 staffs, 3 managers and 4 support staff ) eventually required five days time to screen and interview 150 external applicants who turned up for the interview and another one day to interview and select the internal candidates. Finally, at the end of the recruitment drive, 50 candidates were hired from external sources and 10 candidates were sourced internally through transfers and promotions. Once the job applicants got selected in the interview, it was a mandatory policy at TQR for the new external hires to undergo a medical examination and get their records verified. In this regard, TQR had outsourced such activities to various third party agencies and had to incur a cost of `600 per candidate on medical examination and `500 per candidate on employment and record verification. Additionally, the company has a policy to reimburse the travel cost for each externally recruited candidate to appear for the interview if they were selected for the job. On an average, a cost of `2,000 was incurred by the selected candidates for travel to appear for the interview. With regard to the internal candidates, they were not paid any travel and lodging expenses since the company policy was to recruit internal hires through telephonic interview and video conferencing. However, candidates accepting transfer were provided with relocation expenses. The average relocation cost, to be paid by the employer, was calculated at `15,000 per transferred employee. Four of the internally recruited candidates were transferred from their current location. However, the company decided not to reimburse the relocation cost for the external hires. The company also decided to keep `20,000 aside to meet the other miscellaneous joining expenditure against security checks, opening a new employee file and making the employment bond for the total number of new hires. Once all the hiring decision was made, the HR team headed by Riya, gathered to review the total cost incurred by the company on this recruitment exercise. It was known to them that the salary and benefits of HR staff was `200 per hour for 8 working hours a day and for the managers it was `600 per hour for 8 working hours a day. The salary and benefit for the support staff was `50 per hour for 8 working hours a day and they would also be paid an overhead charge of 10% on their daily wage in lieu of helping the HR team throughout the 6 days of the recruitment process. The team also noted that out of 50 external hires, 18 were hired through referrals whereas out of 10 internal hires, 5 were hired through referrals. The HR team had to now calculate and report the entire cost so that the finance department could settle the accounts. Additionally, Riya was required to submit a report to the managing director presenting the external cost per hire, internal cost per hire and the total cost per hire.

Q. To work out the solution sheet to be prepared by Riya