
ISO/TS 30407:2017
Human resource management — Cost-Per-Hire
Introduction
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— Cost-Per-Hire Internal (CPHI) defines a formula and methodology for creating the CPH measure appropriate for a particular organization. This metric is not designed for comparison with other organizations’ CPH data. It is designed to be a comprehensive reflection of CPH data for a single organization.
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— Cost-Per-Hire Comparable (CPHC) defines a formula and methodology for creating the CPH measure appropriate for comparison across organizations. This metric uses a similar methodology to CPHI; however, it uses a subset of data that is more likely to be used across organizations and is helpful in building acceptably strong comparisons of costs between organizations.
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— Hire-Cost-Ratio (HCR) defines a formula and methodology comparing the total cost of hiring against the total compensation of the newly hired individuals in the first year of their employment. This formula varies from the CPHI or CPHC only in the denominator; whereas CPHI or CPHC are ratios of costs to the number of hires, the HCR is a ratio of costs to the total first-year annual compensation of the new hires.
Organizations
— As benchmark data to be compared with data from other companies, competitors, other divisions, etc.
— As a budget planning tool, quarterly and annually
— As a comparator in recruitment process outsourcing (RPO) decisions
— As a factor in strategic planning and budgeting tasks, to determine future costs in investment decisions
— As a component of tracking and assessing the total cost of workforce turnover
— As an ongoing measure of the recruiting function’s overall performance
Departments and individuals who perform, manage or evaluate recruiting costs
— In setting sourcing budgets and strategy
— In assessing source cost-effectiveness
— As a measure of process improvement success
— As a component of overall recruiting process efficiency
— In measuring and comparing sub-group performance
— In measuring and comparing hiring performance by employee segments, such as professional versus hourly hires
— As a measure of individual recruiter performance
— As a screening criterion in the interview/selection process for recruiter hiring
— As a proficiency benchmark in recruiter training
— As an input in workforce planning scenarios
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