Cost Per Hire – The Key to Success?
Every great company shares the two same components. From the larger players like Apple, Google and Waitrose to your local newsagent or Coffee Shop. People and Products. No business is successful in the long term getting these right.
So, it stands to reason that there are few decisions of greater importance to any company than determining who it hires. Whether looking at Leadership roles, Support Function, Technical Experts or Customer Facing, the need is the same. So why the importance of the Cost per Hire metric? In many cases this dangerous metric indicates little more than the justification for an HR and Internal Talent Acquisition Team.
HR departments are under increasing pressure to become more agile, more commercial and more in tune with the end user of company’s products and services. What could HR Directors do differently in 2017?
- Measure the quality of the hire? The ROI of the new individual, their impact on colleague engagement within their business area?
- The speed of the new hire is also key, to demonstrate the agility of the Recruiter. Can the Recruiter gather the necessary understanding of the role to identify the right candidates quickly? If the candidates are in short supply, can this be conveyed effectively to the hiring manager in order that interim measures can be explored to keep the business moving?
- The accuracy of the hiring manager? Was the role profile correct? Is it a to do list, or does it capture the essence of the part that this person will play in the overall success of your organisation? Does it include short term and long term objectives?
- The cost of hiring failures. Short service attrition rates and the costs that surround this in terms of training and lost business revenue.
Wouldn’t it be great to see more HR information in board packs in 2017? The points above will require more analysis than simple data collection of cost metrics, but would show the true value add provided by so many of our HR and Recruitment colleagues.