CXR Research: Using a Chargeback Model in TA

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

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Chris Hoyt

A veteran of recruiting and HR, Hoyt is a sought-after speaker with presentations including national conferences with SHRM, LinkedIn, HR Technology, ERE and others in the USA as well as UNLEASH, iRecruit, Australasian Talent Conference and more abroad. Chris has been promoting and leading full scale and enterprise-wide integrations of social media and mobile marketing within workforce strategies for his entire career. His expertise and passion for interactive/social recruiting, candidate experience, and both national and international recruiting strategies are all areas that Hoyt now leverages as co-owner and President at CareerXroads, a Recruiting/Staffing consulting and think tank organization that works with corporate leaders from around the world to break out of traditional recruitment practices and push the envelope in an effort to win the ongoing war for top talent.

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