Recruiting Metrics More than Average Cost per Hire Still Needed by HR

HR Metrics Don’t Equal a Seat at the Table

Scroll down to read more!

HR Metrics Don’t Equal a Seat at the Table

Scroll down to read more!
Recruiting Metrics More than Average Cost per Hire Still Needed by HR

Table of Contents

SHRM Issues Cost Per Hire Scorecard.  Is it Important?

Earlier last week, the Society for Human Resources Management (SHRM) unveiled their first human resources metric reporting standard providing a meaty analysis and explanation in 40 plus pages of bedtime reading sure to cure my recent battle with insomnia.  (enjoy it here)  Essentially, the SHRM professional task force is working with the American National Standards Institute to create some consistency among the willy-nilly human resources  measurement scorecard and HR metrics present in our industry today.

The SHRM task force spent in excess of two years and counting developing some consistency around HR measurements and analytics like cost per hire, turnover, training costs, and terminations rates.  However, in that same time period the average HR person’s workload has likely doubled or tripled as companies continued to cut costs in non-income generating departments like human resources.  And so last week, the task force unveiled their first HR scorecard standard: cost per hire.

Metrics That Matter? Understanding the New Cost Per Hire Formula

For the human resources manager, the proposed cost per hire standard delivers a formula, provides guidance and defines three different important terms within CPH: internal costs, external costs, and total number of hires.

How They Calculate the Cost per Hire:

  • External Hires.   A variable cost that evaluates spending outside of the organization during the time period in question.
  • Internal Hires.  A variable costs that includes all internal recruiting costs and expenses during the time period in question.
  • Total Number of Hires.  Includes the total number of hires within a specific time period.  Employee status whether full time or part time is not taken into account as part of this calculation.

More Complicated than Just a Cost Per Hire Calculator

Unfortunately, the average HR manager and recruiter will likely have no idea how to calculate the metric according to the new standard mainly due to the wonders of the internet and Search Engine Optimization.  For example, if I were to Google the keywords “cost per hire standard” there would be only one result for  new SHRM standard.  HR professionals are likely to obtain inaccurate information unless they frequent reputable industry websites like this Blogging4Jobs, ERE.net, SHRM, and TNLT or their HR Technology analytics tools like Visier, Aquire, and Wanted Analytics.  Educating the HR industry as these new metrics standards are developed will be a process within itself. Good luck!

While the SHRM cost per hire standard  allows for measurement consistency for an industry, it doesn’t solve the bigger problem. HR managers and recruitershave to get out from behind the desk and into the board room or the factory floor where the action is.  It doesn’t matter how many HR Metrics Standards SHRM and the industry has in place.

Recruiting Metrics More than Average Cost per Hire Still Needed by HR

Until an HR professional can read a P&L, openly discuss gaps in a quarterly financial statements or understand how streamlined logistics impacts the success of a new product launch, no amount of fancy HR metrics can buy us things like accountability, business savvy, or respect from our peers and senior leaders in the organizations where we work.  HR’s seat at the table will not be found through a standardization of HR metrics like cost per hire.

Photo Credit SHRM & LearnHR Blog.

Did you like this post? Share it!

Comments are closed.

A Word From Our Sponsors

Ads help make Workology resources free for everyone. We respect your privacy. To see our Privacy Policy click here.

Recommended Posts

27 Companies Who Hire Adults With Autism

List of companies who hire and employ adults who are neurodiverse. ...

The Costs of Form I-9 Software

Read the complexities of Form I-9 compliance software costs. We break down pricing structures, features & benefits to help HR professionals....

Episode 415: Registered Apprenticeship Programs in the Clean Energy Sector With Dr. Janell Hills

In this episode, we interview Dr. Janell Hills from IREC about developing registered apprenticeship programs in the clean energy sector....
Sanjay Sathé, Founder & CEO of SucceedSmart, is no stranger to disrupting established industries.

Q&A With Sanjay Sathé, Founder & CEO of SucceedSmart

Sanjay Sathé, Founder & CEO of SucceedSmart, is no stranger to disrupting established industries. ...
supporting caregivers: the sandwich generation at work

Supporting Caregivers: The ‘Sandwich Generation’ at Work

Are companies doing what they should to support employees who become caregivers? ...

Recruiting Reimagined: How Specialized Software Strengthens Hiring in 2024

Even during fluctuating economic crosswinds, the war for talent remains white-hot across most industries. To efficiently staff crucial openings while staying within strained budgets,...

Checkout Our Products

Ads help make Workology resources free for everyone. We respect your privacy. To see our Privacy Policy click here.

More From Workology

Recruiting Reimagined: How Specialized Software Strengthens Hiring in 2024

Click on read more to open this post on our blog.
supporting caregivers: the sandwich generation at work

Supporting Caregivers: The ‘Sandwich Generation’ at Work

Are companies doing what they should to support employees who become caregivers?
Sanjay Sathé, Founder & CEO of SucceedSmart, is no stranger to disrupting established industries.

Q&A With Sanjay Sathé, Founder & CEO of SucceedSmart

Sanjay Sathé, Founder & CEO of SucceedSmart, is no stranger to disrupting established industries.

Episode 415: Registered Apprenticeship Programs in the Clean Energy Sector With Dr. Janell Hills

In this episode, we interview Dr. Janell Hills from IREC about developing registered apprenticeship programs in the clean energy sector.