As a part of our new HR metrics initiative I am trying to nail down an as accurate cost per hire metric as possible. I want this metric to include all labour costs on top of all recruitment expenses.
My problem is that I am having trouble including many different variables in order to come to an exact figure.
So far I am looking at:
1) Total recruitment costs
2) Recruiter efforts
a. Calculated: (average recruiter salary / # of work days) * 10%(see note) * average days to recruit * number of active recruiters
3) Total new hires
Note: 10% is an estimate of how much of the recruiter’s day is spent on recruitment (this doesn’t seem legitimate enough)
My formula looks something like: (1 + 2) / 3
For some reason, this figure looks too low and I think it has something to do with the recruiter effort step. This step does not take the number of new hires into consideration, and the amount of effort as the new hires number rises – whether this is an exponential or linear growth (I don’t know).
I hope I have made this as clear as possible, I will monitor this post to comment on any replies or questions you may have. Any help is appreciated.
Thanks,
sjak
My problem is that I am having trouble including many different variables in order to come to an exact figure.
So far I am looking at:
1) Total recruitment costs
2) Recruiter efforts
a. Calculated: (average recruiter salary / # of work days) * 10%(see note) * average days to recruit * number of active recruiters
3) Total new hires
Note: 10% is an estimate of how much of the recruiter’s day is spent on recruitment (this doesn’t seem legitimate enough)
My formula looks something like: (1 + 2) / 3
For some reason, this figure looks too low and I think it has something to do with the recruiter effort step. This step does not take the number of new hires into consideration, and the amount of effort as the new hires number rises – whether this is an exponential or linear growth (I don’t know).
I hope I have made this as clear as possible, I will monitor this post to comment on any replies or questions you may have. Any help is appreciated.
Thanks,
sjak