What is the difference between direct and indirect staffing costs? Provide two examples of each

What will be an ideal response?

Direct staffing costs are costs incurred as a direct result of a staffing activity. A firm often incurs large direct costs if critical positions are unfilled for longer than necessary, for example. Direct costs are those charges incurred as an immediate result of some staffing activity. For example, poor hiring increases a firm's direct costs in the areas of training, supervision, turnover, and lower productivity. Direct costs are relatively easy to measure and track over time.

Indirect staffing costs are those not directly attributable to staffing activities, such as lost business opportunities, missed deadlines, lost market share, cost overruns, reduced organizational flexibility, and declines in the morale of a firm's workforce. The indirect costs of poor hiring can be even more significant than the direct costs but more difficult to measure. Conducting a staffing evaluation can help a firm calculate both the direct and indirect costs of its staffing system and identify ways to improve the company's return on its staffing investment.