To keep track of and minimize recruitment costs, employers often turn to various recruitment metrics, with one of the most common being cost per hire.
As the name suggests, cost per hire is the amount of money you spend on a single hire. This common recruiting metric is calculated by adding up both the total internal and external costs of all hires and then dividing by the number of hires made over a specific time period.
To successfully optimize your recruitment process, you should look at your cost per hire in tandem with other recruiting metrics, including:
The time between when a job opening is published and when a candidate is hired is one of the biggest indicators of the efficiency of your recruitment process. Many companies choose to utilize the expertise of a third-party talent acquisition partner, who can quickly automate various stages of your recruitment process, giving your business a competitive edge while reducing the time, money and resources spent on filling job vacancies.
Source of hire
Keeping track of where your new hires are coming from offers valuable insight into your hiring process. Whether it be a job board or social media, this metric helps you develop targeted recruitment strategies and indicates where to allocate your marketing budget for your staffing efforts. As your partner, Empower Partnerships can use this information to strengthen your talent pipeline and reduce the time and money spent on finding top talent.
Quantifying the experience of your candidates can be an effective way of pinpointing areas of your recruitment process that work—and ones that don’t. A smooth, efficient, and welcoming screening, interview and onboarding experience will attract more and better candidates, improving both the quality and efficiency of your hiring efforts, and a provider like Empower Partnerships can implement candidate experience best practices with your business goals in mind.
Why track your cost per hire?
While this metric shouldn’t be the sole determiner of your recruitment team’s success, it is a highly reliable and accurate way of measuring the cost effectiveness of your recruitment process. Breaking down your cost per hire helps you more easily identify where you may be spending too much money in sourcing candidates, or where you should be allocating more money towards finding top-talent. It’s important to recognize that consistently monitoring this crucial metric is a tedious task, so it may make sense to engage a talent acquisition partner that can help you bring this cost down while attracting and hiring the best people for your company.
Reduce your cost per hire with Empower Partnerships
One of the most effective ways of reducing your cost per hire is to outsource your recruitment process to a third-party provider like Empower Partnerships. We take a holistic approach to talent acquisition and management, implementing solutions that fill in any existing gaps and eliminate hidden costs. We especially recognize the importance of company culture, so we tap into your shared values and goals to source talent that will stick around, ultimately reducing your recruitment costs by improving retention of your best hires, reducing the need to seek new people in the first place.