Cost Per Hire
Cost per hire refers to the amount of money or refers to the cost a company spends to hire or recruit a new employee. The cost per hire is also known as CPH. CPH may vary depending on the size of the company, the number of recruitment they use, and the efficiency of the employees. Cost per hire is the most important metric for talent analytics. When the company knows their CPH, they can better determine where to invest their recruitment money. This strategy can attract better individuals to the company. CPH can be used as a benchmark for the company’s ongoing recruitment activities.
Importance of Cost per hire
By determining the cost per hire, recruiters can easily allocate funds or money for recruiting efforts when finalizing the annual budget. Continuously tracking the CPH of the company can also be used to evaluate the efficacy of the recruitment strategy. The performance of the recruitment department is also be measured by cost per hire.