If your recruitment software is currently run on a server that’s installed at your premises, then you probably know how hard it is to stay within a budget. Let’s face it, when you’re running a busy recruitment division or agency,  it’s easy to lose track of costs. But when was the last time you analyzed the total cost of your recruitment software? Never? When you first installed it? Years Ago? Well, let’s pause for a moment and take a look at exactly how much a server-based recruitment software is costing you.

Once you have purchased the software what else are you paying for? Well, you’re probably paying an implementation cost for IT to integrate the platform and updates onto your system. A customization cost for any minor changes you need on the platform. Ongoing IT maintenance cost for the server probably costs you around $1000 a day. Training costs for new staff and software upgrades. And additional customer support costs that add up to a few extra thousand.

Sound familiar? Hidden costs of Installed Recruitment Software have burned and troubled many in the HR industry. And it’s not just installed based recruitment software who are the culprits, some cloud-based recruitment software may also have hidden costs. If you are constantly going over your HR budget, this may be why! So let’s take a look at the total cost of ownership of recruitment software and the difference between installed and cloud-based recruitment software.

The Total Cost of Ownership and What it means for Recruitment

The total cost of ownership refers to the total of all the costs of setup, implementation, and maintenance of your recruitment software. This takes into consideration not just the initial cost of the software but also the hidden costs and costs of ongoing maintenance. If you are currently using a server-based recruitment software, chances are hidden costs account for nearly 50% of your total cost of ownership. Although cloud-based options generally have minimal hidden costs, it’s important to still analyze and consider costs as some still charge for technical support and training.

 

Server Based TCO = Setup Cost + Cost of Recruitment Software Itself + Customization + Implementation + Customer Support + Training Costs + Ongoing IT Maintenance Costs

Cloud-Based TCO like MyRecruitment+ = All inclusive Subscription Cost

 

 

 

Cost of the Software + Set Up

The setup cost for server-based recruitment platform is just the start of costs that follow shortly after. When you purchase a server-based recruitment software you now have to manage or outsource a range of activities such as IT and implementation that come at an extra cost. On a Cloud-based recruitment software like My Recruitment Plus, you will only be required to pay an all-inclusive subscription cost for the software. Since it is Software-as-a-Service, there is no long installation process or extra resources needed. Seeing as there are no extra hidden costs or costs of outsourcing, this could save you thousands in the long run and lets you understand if the recruitment software actually fits within your HR budget.

HelpDesk/ Customer Support Cost

Whether it is for technical or functional support, your server based recruitment software likely charge you for any telephone or email support. On the other hand, as cloud-based Recruiting Software is generally self-service so depending on your provider, you will rarely need to worry about extra customer support costs.

IT Maintenance/ Third Party IT Cost

Server-based platforms require ongoing IT support for 2 main reasons: ongoing software upgrades and maintenance of the server itself. If you use a third party IT for this, it could be costing you upwards for $1000 a day. On a cloud-based software, any upgrades or new features are automatically updated, managed by the recruitment platform themselves and do not come at an extra cost.

New Staff Training Cost

If you currently use a recruitment software, you would be no stranger to training costs. Many recruitment software (regardless of being cloud/ server based) charge for training services both online and onsite. This means that every time there is a new staff member, software upgrade; you need to pay an extra cost for staff training (per person). Before making the switch to a cloud-based recruitment software, remember to ask them if they charge for training!

If your recruitment software is still run on a server that’s installed on site, our question to you is why? Low total cost of ownership, minimal staff resourcing, and no ongoing maintenance makes cloud-based recruitment software the way to go. But be careful, some cloud-based recruitment software also have hidden costs like support and training – so make sure you do your research before you make this switch. Try a Free Recruitment Software and make the switch to a cloud-based recruitment platform with no hidden costs today!


Anwar Khalil

Author

Anwar Khalil

CEO

MyRecruitment+ Recruitment & onboarding software platform
Learn more about MyRecruitment+