Here’s What’s Wrong With “Cost Per Hire”
By: Gary Miller
Cost Per Hire is a traditional and widespread math equation measuring the investment that goes into talent acquisition as the numerator and number of hires over a given time period as the denominator. The total cost of the internal recruiting staff, referral programs etc. make up the internal costs. Job boards, advertising, recruiting firm fees, job fairs, college programs add to the external costs. Closely measuring this is sensible on the surface and most strategy is around the obvious question, ”how can we reduce Cost Per Hire”?