- Calculate interview costs for 3 candidates at \(\$2,000\) each: \(\$6,000\).
- Sum the fixed fees: Job posting (\(\$1,000\)), 1st Year (\(\$16,000\)), Real Estate (\(\$20,400\)), Shipping (\(\$4,000\)), and Family Travel (\(\$2,000\)).
- Add all components to reach the total recruitment expenditure.
- The total recruiting expense is \(\boxed{\$49,400}\).
Explanation
- Breakdown of Recruiting Expenses
To determine the total recruiting expense, we must identify and sum all associated costs based on the recruitment data provided. The candidates involved total 3, and the new employee has a family of 5. The salary is \(\$160,000\) and the house sale price is \(\$340,000\). The costs are as follows:
- Interview costs: \(\$2,000\) per person for 3 candidates, totaling \(\$2,000 \times 3 = \$6,000\).
- Job posting fee: A fixed cost of \(\$1,000\).
- 1st Year fee: \(\$10\%\) of the \(\$160,000\) salary, which is \(\$160,000 \times 0.10 = \$16,000\).
- Real estate fee: \(\$6\%\) of the \(\$340,000\) house sale price, which is \(\$340,000 \times 0.06 = \$20,400\).
- Shipping fee: A fixed cost of \(\$4,000\).
- Family travel cost: \(\$400\) per person for a family of 5, which is \(\$400 \times 5 = \$2,000\).
- Calculation of Total Expense
Now, we sum all the calculated individual costs to find the total recruitment expenditure:
\[\text{Total} = \$6,000 + \$1,000 + \$16,000 + \$20,400 + \$4,000 + \$2,000\]
Summing these values step-by-step:
\(\$6,000 + \$1,000 = \$7,000\)
\(\$7,000 + \$16,000 = \$23,000\)
\(\$23,000 + \$20,400 = \$43,400\)
\(\$43,400 + \$4,000 = \$47,400\)
\(\$47,400 + \$2,000 = \$49,400\)
The total recruiting expense is \(\$49,400\).
- Conclusion
The total recruiting expense for the company is \(\boxed{\$49,400}\).
Examples
Understanding recruitment expenses is a fundamental skill for HR managers and business owners. For instance, when a company decides to hire talent from another city, they must account for not only the recruiter's fee but also relocation assistance, housing support, and travel for the family. By systematically calculating these costs, companies can accurately budget for growth and ensure that their hiring strategies remain financially sustainable while attracting top-tier talent.