*This article was originally published on 1 October, 2015, and has been edited and republished.
What is Cost Per Hire?
The cost per hire (CPH) is a hiring metric that is the total amount of money invested divided by the number of hires. It is a very important metric for measuring efficiency in recruitment, and many people are consciously working to reduce it.
In this article, we would like to share three case studies of our clients. Please note that in accordance with our privacy agreement, the company names will not be disclosed.
*Cost in the table above includes fees paid to SMS24/7 and does not include internal costs.
The table above shows the results of actual job campaigns conducted by our clients in the past.
First, and most surprisingly, they all have very low CPH. In particular, CASE3 spent only $50 to hire one person.
The difference in the three cases can be explained by how much media was used. Especially when there is less urgency and more time, media use tends to be minimal, resulting in lower costs.
Second, we have been able to secure the planned number of recruits for both projects in a short period of time. Our client were satisfied not only with the cost, but also with the results.
Efficient recruitment made possible by SMS24/7
SMS24/7 will provide recruitment support based on the RPF formula.
1. REACH out to your applicants via the Correct Media. It could be the newspapers (If so, which one? Let US advise!), posters, online ads, word of mouth…etc.
2. PROCESS applications more efficiently. Our system helps HR teams do that.
3. FOLLOW UP diligently. Typically, our successful customers contact their candidates within a day and hire within 3 days. With a tight labor market, speed is of the essence. SMS24/7 automates the process and assists the client.
If you need more information, please do not hesitate to contact us.