WHAT IS THIS KPI? Cost per Hire measures the average spend associated with recruiting to fill an open position in an organisation
WHY IS THIS METRIC IMPORTANT? Cost per Hire allows organisations to benchmark recruitment spend and forecast the amount of investment needed for effective talent acquisition. It helps HR Leaders to plan effectively and assists with the development of future hiring budgets. Cost per Hire also enables Recruitment and HR professionals to calculate a meaningful recruitment Return on Investment (ROI) figure
An understanding of Cost per Hire and the ROI of recruitment spend are valuable tools used to manage and monitor performance. They are often used for goal setting and performance appraisals in talent acquisition teams. These metrics also offer a powerful way to articulate the value that an internal recruitment team is able to provide to their organisation
To read more about how to measure recruitment performance in your organisation download this report.