Cost per Hire
During the hiring process, it is important that recruiting departments measure the costs associated with recruiting top talent. Cost per Hire is the measurement of total of internal/external costs divided by the number of hires. Internal costs may include things like employee referral payouts, TA software costs or career development of the recruiting team. External costs may include Background checks, agency fees, or job board advertising fees. The combination of both can get very pricey.
Benefits of Cost per Hire
It is important to measure Cost per Hire because it will help with understanding how much spend is going into finding top talent. While a low cost per hire is the important, it shouldn’t come before the quality of the talent being hired.
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