Actual vs. Budgeted Cost of Hire
Money
Compares the actual cost of hiring new employees to the budgeted or projected cost. It allows HR departments to assess their efficiency in the hiring process and adjust future budgets based on past spending. Discrepancies can lead to refining recruitment strategies or reallocating budget.
Formula
Actual Cost of Hire - Budgeted Cost of Hire
Example
If the actual cost of hire is $10,000 and the budgeted amount was $8,000, the discrepancy is $2,000.