Cost-Per-Hire

What is Cost-Per-Hire?

Cost-per-hire (CPH) is a metric used by businesses to measure the total cost associated with hiring a new employee. This includes advertising, recruitment agency fees, interview expenses, and any other costs related to the hiring process. For temporary staffing, CPH is an important figure as it helps businesses track and manage the efficiency of their hiring strategies.

By calculating CPH, companies can assess the effectiveness of their recruitment efforts and identify areas for improvement. It also helps to determine whether temporary staffing is a cost-effective solution for filling short-term roles.

Why it’s Important

CPH provides employers with a clear view of the financial investment required to hire new workers. For temporary staffing, this metric can highlight whether the costs of recruiting temp workers are within budget and help adjust strategies to optimize the recruitment process.

Cost-Per-Hire in Practice

A company hiring a temporary project manager might calculate CPH by including expenses like advertising, agency fees, and interview costs. By reviewing CPH, they can assess if hiring through a staffing agency or advertising on job boards is more cost-effective.

Benefits of Tracking Cost-Per-Hire

• Cost Control: Helps employers keep track of their recruitment budget for temporary roles.
• Process Improvement: Identifies inefficiencies in the hiring process and areas for improvement.
• Benchmarking: Provides a benchmark for evaluating recruitment strategies against industry standards.

Best Practices for Using Cost-Per-Hire

• Track All Costs: Ensure that all recruitment-related costs are included in the CPH calculation, including agency fees and job posting costs.
• Evaluate Regularly: Regularly monitor CPH to evaluate the efficiency of your recruitment process.
• Optimize Recruitment Channels: Identify which recruitment channels provide the most cost-effective hires for temporary positions.