Cost per hire
Simply put, in today's market, companies must adapt quickly to changing conditions. Now more than ever, having the right talent in place to support key business initiatives is critical.
When recruiting, it's imperative to exercise all means to acquire the best talent.
The real mission of staffing is to “hire the best possible candidate, in the most advantageous of circumstances, as quickly as can be done and still done well.
Cost per hire (CPH) is merely one segment of the formula needed to measure real effectiveness in meeting your goals. Quality of hire is another issue that drives costs in staffing.
Recruiters are specialists in a particular niche by focusing on direct contact of your industries finest professionals.
Measuring the success of your recruitment cannot rest solely on the (CPH) cost per hire.
HOW MUCH DOES IT REALLY COST TO HIRE SOMEONE?
Many organizations consider cost of advertisements, materials, and salary of recruiters, but there are many other factors that inflate the true cost to hire an employee. The Cost per Hire (CPH) gives you a bottom line assessment of what it costs to hire an employee – one that includes hard and soft costs, apparent and hidden costs.
Annual Salary of FTE Recruiters
Annual Expenditures on Job Boards
Annual Expenditures on Classified Ads
Annual Expenditures on Career Fairs
Recruiting Process Costs (Hours, Salary of Person, Performing Task)
Weekly time spent Sourcing resumes
Average Time Spent reviewing a resume
Average Time Spent per phone interview
Average Time Spent per personal interview
Average Manager Time Spent on realistic job preview (or 2nd Interview)
Average Time Spent preparing a job offer
# of Resumes Reviewed per phone interview
# of Phone Interviews per personal interview
# of Personal Interviews per realistic job preview (or 2nd Interview)
# of Realistic Job Previews (or 2nd Interview) per offer extended
% of Offers Accepted
Additional Screening Costs
Cost of One Background Check
Cost of Individual Skills Assessment
Cost of One Employment
Verification Percent of Employees who pass All Screens.