What should be analyzed when assessing general recruiting costs?

When assessing general recruiting costs, examining the retention rates of hired applicants provides crucial insights into the effectiveness of the recruitment process. High retention rates can indicate that the methods used to attract candidates were successful not only in finding individuals who fit the company's culture and needs but also in ensuring they remain with the organization over time. This aspect is vital, as it reflects the long-term value of the recruitment investment. If a company hires candidates who tend to leave shortly after onboarding, it can lead to increased costs associated with re-recruiting and training new employees. Thus, retention rates serve as a key metric in evaluating the return on investment for recruiting efforts, influencing future strategies and budget allocations.

In contrast, other options may provide relevant information but do not directly serve as a metric for measuring recruiting costs. For example, employee satisfaction ratings might influence retention but do not directly relate to the expenses incurred during the recruitment phase. Overall company revenue could indicate the financial health of the organization but is not specifically tied to recruitment effectiveness. Job market trends provide contextual information about the availability of candidates, yet they do not account for the internal outcomes of recruitment practices.