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Do you measure cost per hire in your company? If so, what data do you consider?

Carrie Scott's Profile

Answers

Topic Expert
Christie Jahn
Title: CFO
Company: Prime Investments & Development
(CFO, Prime Investments & Development) |

There are a lot of different ways to look at this. We recently started measuring this from point of resume posted; how many candidates applied; cost per ad, number of candidates that passed the personality tests, interview process and hired.

Then of course you have the time it takes someone to go through their new hire paperwork, enter them in the system, order their name badge, shirts, etc. then you have to factor in the training period; setting them up with benefits, etc.

The best place to start is on average how long is training, consider the person's wages that trains, and how long does it take the person responsible for setting up a new hire to process everything. That will give you a great estimate.

Topic Expert
Linda Wright
Title: Consultant
Company: Wright Consulting
(Consultant, Wright Consulting) |

In addition to Christie's comments above, there is the obvious recruitment cost+ salary+ fully loaded burden. I think an analysis of retention versus termination tallies is worthwhile, to get the full cost of retaining staff long term.

Topic Expert
Keith Perry
Title: Consulting CFO and Business Operations A..
Company: Growth Accelerator
(Consulting CFO and Business Operations Advisor, Growth Accelerator) |

Adding further to Christie; factor in the wash-outs who depart before they become valuable. If you have to hire 3 to get 2, and your cost per is $100K, then the net per retained employee is $150.

Topic Expert
Malak Kazan
Title: VP, Special Projects
Company: ERI Economic Research Institute
(VP, Special Projects, ERI Economic Research Institute) |

Also factor in the time invested of the performance manager to interview, select, and assimilate the new hire.

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