I have been working on a project with a client; crunching numbers, determining cost per hire and balancing costs of current state vs outsourcing vs internal build of a team rightsized to deliver increasing staffing demands.
Keep in mind I have never been one to worry about cost per hire. Rather I worry about cost per non-hire. What does it cost our clients to have an empty seat? Personally I feel cost per hire is just another way to measure the impact of a staffing function. I can sum up the impact of a staffing function pretty easily. Are seats getting filled or not? Are new hires staying longer than 90 days or not? Are new hires performing at acceptable levels within 30 days? Again, humble opinion here, but does anything else really matter?
We are getting people in the door, clients want to make offers, candidates are happy and effective in the role at the 30 and 90 day mark. I am more worried about the cost the business is putting in to RETAINING these people I have fought other companies for.
FYI, my client is spending about $2000 per hire and has maintained that cost over the past 6 years being woefully understaffed in the staffing group. Not bad...
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