Stop Just Saying “Human Resources Costs” – Here's What the Pros Say

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Stop Just Saying “Human Resources Costs” – Here's What the Pros Say

Have you ever been in a meeting, wanting to discuss "human resources costs" with foreign colleagues or your boss, but found yourself speechless?

Several terms flashed through your mind: labor costs, personnel costs, hiring costs... Which one to use? They all seemed right, but also not quite. In the end, you vaguely said "our people cost is too high," which sounded unprofessional and failed to pinpoint the core issue.

It's like going to the doctor and just saying "I don't feel well," without specifying if it's a headache, fever, or stomach ache. The doctor can't give you an accurate diagnosis, and you can't solve the real problem.

Today, let's change our approach. Stop thinking of "human resources costs" as just a single term to memorize, and instead view it as a "corporate health check-up."


Be a "Business Doctor" for Precise Cost Diagnosis

A good business communicator is like an experienced doctor. They don't use vague terms like "sick," but instead provide a precise diagnosis: Is it a viral infection or a bacterial one?

Similarly, when discussing costs, pros won't just say "human resources costs are too high"—they'll precisely pinpoint the problem.

Before you speak next time, ask yourself these three questions:

  1. Are we discussing the cost of "doing work"? (Salaries and bonuses paid to employees)
  2. Are we discussing the cost of "maintaining staff"? (Beyond salaries, it includes all expenses like benefits, insurance, training, etc.)
  3. Are we discussing the cost of "finding people"? (Expenses incurred when recruiting new employees)

Once you've clarified these questions, the correct English expression will naturally emerge.

Your "Diagnostic Toolkit": Three Core Terms

Let's look at the most important diagnostic tools in your "medical toolkit."

1. Labor Costs: Diagnosing "Work" Itself

This is like taking a patient's "temperature." Labor Costs primarily refer to direct payments made for employees' "labor," which are commonly known as wages, salaries, and bonuses. It's directly tied to production and workload.

  • Usage Scenario: This term is most accurate when discussing production line man-hours or project personnel input-output ratios.
  • Example: "By optimizing the assembly line, we successfully reduced our labor costs by 15%.” (通过优化生产线,我们成功将劳动成本降低了15%。)

2. Personnel Costs: Diagnosing the Total Cost of "Employees"

This is equivalent to giving a company a "full body scan." Personnel Costs is a more comprehensive concept. It includes not only labor costs but also all indirect expenses related to "people," such as employee benefits, payroll taxes, pensions, training fees, and so on.

  • Usage Scenario: When you are preparing annual budgets, analyzing overall operating expenses, or reporting to management, using this term demonstrates your macro perspective.
  • Example: "Our personnel costs have increased this year due to the new healthcare plan.” (由于新的医保计划,我们今年的人事总成本有所上升。)

3. Hiring Costs vs. Recruitment Costs: Diagnosing the "Hiring" Process

This is where it's easiest to get confused, and also where you can best demonstrate your professionalism. Both relate to "finding people," but their focus differs.

  • Recruitment Costs (招募活动成本): This is like the cost of the "diagnostic process." It refers to all activity expenses incurred to find suitable candidates, such as publishing job advertisements, attending job fairs, paying headhunters, etc.
  • Hiring Costs (录用成本): This is more like the cost of the "treatment plan." It refers to direct costs incurred after deciding to hire someone, up until their official start date, such as background check fees, signing fees, preparation for new employee onboarding training, etc.

Simply put, Recruitment is the process of "searching," while Hiring is the act of "employing" or "bringing on board."

  • Example: "We need to control our recruitment costs by using more online channels instead of expensive headhunters.” (我们需要通过多使用线上渠道,而非昂贵的猎头,来控制招募活动的成本。)

From "Memorizing Vocabulary" to "Problem Solving"

You see, the key to the problem has never been memorizing a bunch of isolated words, but rather understanding the business logic behind each term.

When you can, like a doctor, clearly diagnose, "Our company's problem isn't that salaries are too high (labor costs), but rather that new hire recruitment efficiency is too low, leading to soaring recruitment costs," your statements immediately become weighty and insightful.

Of course, even the best "doctors" may encounter language barriers when facing "patients" (partners) from around the world. When you need to communicate these precise business diagnoses in real-time and clearly with a global team, a good communication tool becomes your "personal translator."

The Intent chat app, with its built-in top-tier AI translation feature, ensures that every precise term is perfectly understood by the other party during international communication. Whether discussing personnel costs or recruitment costs, it helps you break down language barriers and ensures your professional insights resonate.

Next time, don't just worry about "how to say this word in English."

Diagnose the problem first, then speak. This is the mindset leap from an ordinary employee to a business elite.