Death of Cost per Hire

Death of Cost per Hire

Getting the results your managers really want and in return increase your credibility.
 

Transcript

Cost per hire. In the same vein as changing our terminology around time to hire, we need to do the same for cost per hire. Again our hiring managers don’t really care whether our average cost per hire is £2000 or £20,000. It means nothing to them, remember all they care about is getting that vacancy filled as quickly as possible and more often that not by any means necessary. Which normally means turning on expensive agencies. But remember that the urgency created is from the manager holding on to information for too long .This will then impact your credibility as your hand is forced to turn on all avenues of attraction, when in reality if you had a proper demand planning process 9/10 this demand would have already been known by your team and you would be in control of the attraction strategies, being that trusted advisor we so crave. And because we’re in control of the hiring process we can directly source candidates driving down our cost per hire. Win win. Hiring manager gets someone in when they need them and you’re in control of the process you’re employed to control, plus you’ll drive down unnecessary cost. We can then track all of these directly sourced hires and attribute them to the hiring plan. You can also compare the cost of hiring managers that don’t engage in a demand planning exercise versus those than do. If you make 1000 hires a year and 5% agency usage with an average fee of £5000 that’s £250,000. A correct demand planning process would easily put you in control of least half of these missed opportunities . Meaning you’ve got another sizeable cost avoidance to your name.

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