Recruiting Cost Ratio

Benchmarking Report

Recruiting Cost Ratio

This PDF report includes benchmarking data (in a visual, chart-based format), an comprehensive KPI definition, characteristics of high performers and technical details on measuring Recruiting Cost Ratio. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.

What is Recruiting Cost Ratio?

The expense incurred by the Recruiting and Hiring function divided by the total compensation-related expense incurred for the positions filled over the same period of time, as a percentage. Compensation typically includes wages, salaries, commissions, benefits, etc.

Why should Recruiting Cost Ratio be measured?

Recruiting Cost Ratio measures the expense incurred by the Recruiting and Hiring function in relation to the total compensation-related expense incurred for the positions filled over the same period of time. High values for this metric can be indicative of inefficient choices of regions from which to recruit from (i.e., universities, online job listings, sponsored events, etc.), poor candidate selection for interviews (i.e., choosing candidates who are not the best fit for the position, etc.), inefficient candidate offers (i.e., offers that do not provide cost effective compensation in the eyes of either the candidate or the company), and sub-par Recruiting & Hiring employee training and performance. Each of these factors can prolong hiring cycle times, waste time recruiting in areas that provide few qualified candidates, increase the chances that a candidate unfit for the position will be chosen, and increases the possibility that the company will be compensating the candidate with amounts not appropriate for the position.

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