Managing expenses and the overall process of budgeting varies with every organization. It is safe to say that there isn’t a set process that can be implemented at every company. One method to manage expenses and time, is through a chargeback model. Traditionally used with IT departments, a chargeback is a process of charging internal customers (other departments or business lines) for the services they used. For TA, this would include a recruiter’s time, technology, resources, etc. A chargeback model apportions the innumerable costs of allocating these expenses to the business units that utilize them.
Not every company uses a chargeback model. In fact, a little more than half of all CXR member organizations use a chargeback model. For those companies that take advantage of a chargeback model, it is mostly centrally funded through HR. The TA expenses that are included in a chargeback can vary. Job postings, screening technology, ATS, headcount, agency and third-party fees, candidate travel and interview expenses, search licenses are examples of expenses that are included in chargeback models. Though each expenses can be siloed, some organizations have also adopted a flat fee within their chargeback.
This member-requested benchmark survey looked at several different organizations that use a chargeback model. The report is available to all CXR members in our Research Library.Discuss this article & related topics on the CXR eXchange.