Recruitment Cost Calculator

Providing Transparency on the Cost of Recruitment

Verite Recruitment Cost Calculator (RCC) provides accurate and up-to-date information on recruitment fees and related costs, enabling employers to enact ethical recruitment policies more effectively in their supply chains.

This tool will help your company:

factor in the cost of legal and ethical recruitment into your business model.
build mechanisms to cover a more accurate cost of recruiting workers into contracts with buyers, clients, suppliers, and labor providers.
benchmark recruitment offers against a reliable set of data to see how a bid compares against actual best practice costs.
protect your company from legal and reputational risks associated with worker-paid recruitment fees.
help employers reduce the costs of recruitment through payment of recruitment costs in advance instead to doing it via reimbursement.

The RCC was developed with generous funding from the Walmart Foundation.

What is the actual cost of ethical recruitment in your labor supply chain?

The cost of procuring labor for your company can vary depending on geographical and market factors. Labor supply chain operational costs are often difficult to estimate, as businesses rarely get detailed insights into the specific charges involved when recruiting foreign workers.

With our Recruitment cost calculator, you can now calculate Recruitment cost more accurately and understand the full range of expenses tied to recruiting foreign workers. By using our calculator, you’ll gain a clear view of your labor supply chain costs, ensuring that your recruitment practices align with ethical standards and financial goals.

We’ve done the research and crunched the numbers to make it easier for you to plan and optimize your labor sourcing strategies.

Select country of origin and destination. In the Country of Origin field, select from the drop-down menu the workers’ community of origin and final destination.

Select key variables that apply to your corridor. Depending on the international corridor, you might need to select recruitment pathway, industry, and worker location.

Get your estimate

Select Country of Destination

Select Country of Origin

Industry

Region of Destination

Recruitment Channel

Region of Origin

How to interpret your results

We provide the cost of the most likely scenario for recruitment. This considers the usual travel duration, the routes, mandatory training or different cost items that must be considered to ensure your business is recruiting under a best practice scenario.
You will receive most of your estimates per worker.
A few cost items are presented per petition or job order, which means these are fixed payments regardless of the number of workers. You should add these costs to your grand total.

Typical costs and fees included in our recruitment costs estimates

Recruitment costs are provided as fees and related expenses.

Fees (or professional fees) are payments for recruitment services performed by an intermediary such as a recruitment agency or crew leader.

Related expenses are direct costs related to recruitment of a worker, such as the costs of transportation, lodging, obtaining required documentation, or training.

Recruitment fees:

This is the service fee charged by a third party to identify, vet, and recruit workers, secure required documents, and/or coordinate logistics.

Recruitment fees typically include operational costs of recruitment services and a profit margin.
When paid to a third-party provider by the employer or a labor contractor, the cost is reflected as a service fee.
When the employer hires workers directly, the cost of recruitment services is reflected in internal and administrative and human resources cost.
It can be more expensive to reimburse workers for recruitment fees than to cover the cost up front with an Employer Pays mechanism. This is because when workers pay for their own recruitment, they often face inflated fees from labor intermediaries.

Related costs:

These are all the other expenses associated with the recruitment process and that are required to procure workers. The following costs are included in this category:

Costs for required legal documents
- Fees for getting important paperwork like IDs, passports, visas, background checks, and exit clearances.
- Contributions to worker welfare funds and the cost of work and residence permits.
Transportation and lodging costs
- Travel expenses to get workers from their hometowns to the job site, and back home after work is done.
- Lodging costs depend on how long the journey takes.
Other costs:
- Medical exams, insurance, skills tests, training, and equipment, if required by employers or governments.

Frequently Asked Questions

What is a Recruitment Cost Calculator (RCC)?

A Recruitment Cost Calculator (RCC) is a tool designed to help employers calculate the full range of costs associated with recruiting workers, particularly in foreign labor supply chains. It helps companies understand the expenses tied to ethical recruitment practices, including recruitment fees, legal costs, and other related charges. The RCC provides transparency in recruitment costs, enabling businesses to plan more effectively, ensure ethical practices, and benchmark their recruitment processes against industry standards.
How can the RCC help my company implement ethical recruitment policies?

The RCC enables companies to factor in the true cost of legal and ethical recruitment into their business models. It allows employers to build accurate cost mechanisms for worker recruitment, reducing risks and ensuring compliance with ethical standards throughout the supply chain.
What benefits does the RCC provide when benchmarking recruitment offers?

The RCC helps businesses compare recruitment offers against reliable data, ensuring that bids are aligned with best practices. This benchmarking capability helps employers make informed decisions and avoid underestimating or overpaying for recruitment services.
How does the RCC protect my company from legal and reputational risks?

By using the RCC, companies can ensure they are not engaging in unethical practices, such as allowing workers to pay recruitment fees. This proactive approach helps protect against legal challenges and reputational damage related to worker exploitation or non-compliance with recruitment regulations.
Is the RCC based on reliable data?

Yes. The RCC is developed based on thorough research and accurate data, which reflects best practices in recruitment across various industries. This helps ensure the tool’s calculations are as precise and useful as possible for your business.
Can the RCC help lower recruitment costs for my business?

Yes, the RCC can help reduce recruitment costs by allowing employers to pay recruitment fees in advance rather than through reimbursement. This payment method is often more cost-effective and helps employers plan for recruitment expenses more accurately.
How do geographical and market factors affect recruitment costs?

Recruitment costs can vary widely depending on the region, local labor laws, and the market conditions in the area where labor is sourced. These factors can impact fees, the process of recruitment, and even the ability to secure skilled workers.
Can the RCC be used for all types of labor supply chains?

Yes, the RCC is applicable to various labor supply chains, particularly for companies sourcing foreign workers. It provides a standardized approach to estimating recruitment costs that can be applied to a wide range of industries and regions.
What if my company pays more for labor procurement than the calculator’s estimated cost range?

If you are paying well in excess of the true cost of recruitment, the recruiter or other labor intermediary or service provider may be overcharging you. Lack of transparency in the labor supply chain can lead to inflated costs.

Suggested Action

Perform an audit or due diligence screen of recruitment costs your company is paying for. Compare the amount charged by service providers against the true market rate.
What if my company pays less for labor procurement than the Calculator’s estimated cost range?

You may not be paying for all recruitment costs in your labor supply chain. This is a strong indicator that these costs are being passed on to workers, leading to risks of debt bondage and forced labor. Our numbers will tell you if there are any red flags or risks in your labor supply chain. If you are paying less than the cost of recruitment, it is highly likely that workers are covering the difference, exposing workers to a risk of debt bondage and your company to severe legal and reputational risk.

Suggested Action

Verify the adequacy of your company’s payments to the recruiter to determine whether your company is covering the cost of recruitment.
Does the calculator provide an estimate of the recruitment costs my company is legally required to cover?

The cost items listed in our Calculator include all costs related to recruitment—legally required and all other costs as well. The Calculator provides you with guidance on the costs that should be covered according to the Employer Pays Principle, a best practice standard on ethical recruitment and human rights due diligence.

Companies adhering to the Employer Pays Principle commit to paying all recruitment fees and related costs or expenses associated with procurement of a worker from their point of origin to the place of employment. The RCC shows what exercising ethical recruitment, including the Employer Pays Principle, looks like in practice and from a financial perspective.
Do estimates in the calculator reflect fluctuations in market rates for recruitment fees and related costs?

We provide our estimates in ranges (lower and higher estimate) to account for cost variations in the market. Some of the most common cost variations include seasonal or reasonable market fluctuations or changes in transportation costs; market variations within the range of fees charged by a set of service providers; variations based on wage or sex-based variations.

Note that labor intermediaries providing ethical recruitment and due diligence compliance tend to charge more to employers for this specialized service.

Ranges for each cost item (lower estimate and higher estimate) are determined on a case-to-case basis depending on sample size. For a smaller sample (fifteen or less data entries), the formula for ranges will be the absolute minimum and absolute maximum.
For a larger sample (above fifteen data entries) the ranges are estimated as a dispersion of the mode’s minimum and maximum.

How can the Calculator help your business or organization?

For Enterprise Level - Top of the Supply Chain

Ensure labor recruiter agreements provide clear, itemized lists of costs, distinguishing what employers cover and what workers cannot be charged for.
Review and understand all invoices and receipts from labor recruiters.
Understand receipts for any reimbursable fees workers may have paid, especially in cases where employers can't cover costs directly.
Demonstrate the value of being an ethical employer, which protects your brand from legal and reputational risks.
Negotiate to include premiums in contracts with growers and retailers to cover ethical recruitment costs.

For Buyers, Suppliers, and Business Partners at All Levels of the Supply Chain

Include provisions in contracts with suppliers to cover the cost of ethical recruitment, ensuring they profit without passing fees onto workers.
Assist in reviewing audit reports and investigations into recruitment fees.
Equip employers in the supply chain to adopt the Employer Pays Principle and meet ethical recruitment standards.
Facilitate discussions between agents, suppliers, and buyers about how recruitment costs are distributed.
Uphold Human Rights Due Diligence and extend worker protections down the supply chain.

For Recruitment Agents and Labor Providers

Negotiate fair service fees by showing the value of ethical recruitment, which shields brands and retailers from legal risks.
Use the Calculator to provide realistic market rates for your services to clients.
Offer transparency about costs in workers’ countries of origin, often overlooked by clients.
Show clients what ethical recruitment practices look like and why they matter.

For Civil Society, Workers’ Organizations, and Policy Advocates

Educate and prepare workers on risks like debt bondage and forced labor during recruitment, helping them avoid exploitative costs.
Support advocacy for ethical recruitment principles, including the Employer Pays Principle, to protect worker rights.

More resources on Ethical Recruitment

Check out more resources to implement ethical recruitment here

We are always striving to make our tools and resources better. Need help using our Recruitment Cost
Calculator (RCC)? Have ideas to make them even more effective?
Get in touch with the Verité team today.

Recruitment Cost Calculator

Providing Transparency on the Cost of Recruitment

What is the actual cost of ethical recruitment in your labor supply chain?

How to interpret your results

Typical costs and fees included in our recruitment costs estimates

Recruitment fees:

Related costs:

Costs for required legal documents

Transportation and lodging costs

Other costs:

Frequently Asked Questions

What is a Recruitment Cost Calculator (RCC)?

How can the RCC help my company implement ethical recruitment policies?

What benefits does the RCC provide when benchmarking recruitment offers?

How does the RCC protect my company from legal and reputational risks?

Is the RCC based on reliable data?

Can the RCC help lower recruitment costs for my business?

How do geographical and market factors affect recruitment costs?

Can the RCC be used for all types of labor supply chains?

What if my company pays more for labor procurement than the calculator’s estimated cost range?

Suggested Action

What if my company pays less for labor procurement than the Calculator’s estimated cost range?

Suggested Action

Does the calculator provide an estimate of the recruitment costs my company is legally required to cover?

Do estimates in the calculator reflect fluctuations in market rates for recruitment fees and related costs?

How can the Calculator help your business or organization?

More resources on Ethical Recruitment

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