WinningKPI - HR - KPI for Measuring of Average Cost to Recruit posted in category HR KPI details: Details:
This indicator is for measuring the average cost the HR Department spends on filling one vacancy. This KPI is calculated by dividing the total recruitment costs by the number of open vacancies, in a give time period.
A company’s aim is to minimise this KPI, and the Average Time to Recruit KPI, whilst maintaining quality standards of the Recruitment process. For example a company may set a low Average Cost to Recruit KPI and a high % of New Hires achieving 12 Months Service KPI.
This KPI can also be used to measure the performance of the HR Department.
Formula:
Total recruitment costs / number of open vacancies
KPI Unit: Money
KPI Time Frame: update annually
Posted by Oana Boteanu | Help to protect community: Flag for moderation
Ideas suggested by WinningKPI community:Here are comments:
Example:
If a Service based company spends on average $7000 a year on recruiting costs, for around 30 vacancies.
The average recruitment cost is:
9000/30 = $300 per vacancy
The company could reduce this cost by putting in place strategies to increase the employee retention rate.
However, $300 per vacancy can be seen as a relatively low cost.
Oana Boteanu | + | September 9, 2012 at 6:12 am
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