Direct HR costs are expenses that can be clearly linked to specific HR activities, such as salaries, benefits, and training. Conclusion: These costs are often the most significant part of an HR budget, but they are also the most straightforward to calculate and manage.

Often the cost of hiring new employees are not so obvious, as they are hidden or indirect costs, such as searching and interviewing.

Indirect HR costs are expenses that are not directly tied to specific HR activities, but still impact the overall HR budget, such as recruitment, turnover, and absenteeism.