Some companies do not believe in calculating cost per hire, but it really is a good tool when considering recruitment. The formula for cost per hire is here and the goal is to get it to the lowest amount of money as possible, even trying to get it to zero dollars. It all comes down to calculating success, and this old school technique can help you stay profitable by hiring the right people in the most efficient way.
Reflect on these key points:
- 1Before making a decision to hire more workers, a company should calculate what the cost will be to hire each worker.
- 2This cost of hire metric should include all expenses involved in the hiring process — both within the company as well as outside of the company.
- 3There are a lot of different metrics to help management with this decision and the more informative metrics cost a lot more money to calculate.
“The goal of calculating cost per hire is to make sure the cost is acceptable.”
Read the full story: https://www.hrbartender.com/2017/recruiting/calculate-cost-per-hire/