Cost-per-hire (CPH) is the primary metric for analyzing your recruiting program’s budget allocation and overall effectiveness. Of all your 2018 recruiting data points, your cost-per-hire (CPH) will likely have the most influence on next year’s recruiting budgets and strategies. To calculate CPH, you simply add up your hiring cost structures for a given time period then divide by the number of hires in that time period. But what exactly are your hiring cost structures?
As our slightly dramatic blog title suggests, we’ve developed a recruiting e-learning app that needs to be completed by EOD (end of day). This simulated work scenario begins with Kate, the COO for a growing software company, receiving a text from the CEO. Kate must text quarter-ending cost-per-hire by 5pm. In a panic, Kate texts you for help.
Click below to help Kate and save the day.
Well, after a (simulated) day like today, it’s no wonder why Kate hired you!
Cost-Per-Hire Benchmarks and Benefits
When you fully understand your recruiting processes and cost structures, calculating cost-per-hire is relatively easy and quite effective. With an accurate CPH you can now:
- Track and benchmark cost-per-hire over time or against your industry’s average.
- Compare your cost-per-hire against internal and external hiring sources.
- Analyze cost-per-hire data by department, agency or position type.
If this e-learning experience seemed worthwhile, check out our other recruiting resources below. But first, isn’t time to ask Kate about that raise?