What is Cost-per-Hire ?
‘Cost-per-Hire’ is the overall cost of hiring an employee for the company. It includes the costs associated with advertising the vacancy to hiring formalities, training of the new hire, other administration level costs, etc.
Every company strives to lower the cost per hire. However, it varies widely depending on the position being filled, the number of vacant positions available, advertising channels used for recruitment, the size of the company, etc.
One of the easiest methods companies apply to lower the cost-per-hire is incentivizing the existing employees for every new hire placed who were referred by them. Other options include making use of the social media channels as well as the website. Similarly, an effective HR software could also help lower the cost-per-hire significantly.