Question 1

Should I include recruiter salaries in CPH?

Accepted Answer

Yes, SHRM/ANSI standards include internal labor costs. Allocate the portion of recruiter time spent on hiring activities. This gives a true picture of total recruitment cost. Excluding labor understates actual cost and misrepresents efficiency.

Question 2

How do signing bonuses affect CPH?

Accepted Answer

Signing bonuses are typically included as external costs if they're recruitment-related. They're part of what it costs to attract talent. Very high signing bonuses can dramatically increase CPH for certain roles. Consider tracking separately to understand impact.

Question 3

What's the relationship between CPH and quality of hire?

Accepted Answer

Ideally, track both. Low CPH with poor quality hires is false economy - turnover costs far exceed hiring costs. Some organizations calculate cost per quality hire or include cost of turnover in CPH for failed hires. Balance efficiency with effectiveness.

Question 4

Should CPH include training and onboarding?

Accepted Answer

Standard CPH excludes post-hire costs like training and onboarding. However, some organizations calculate 'total cost of new hire' including ramp-up time. Keep CPH focused on recruitment; track onboarding costs separately.

Question 5

How does remote work affect CPH?

Accepted Answer

Remote hiring can reduce CPH: wider talent pool, less candidate travel, virtual interviews. But it may increase screening costs and technology needs. Relocation costs disappear. Many companies see CPH decrease with remote hiring.

Question 6

How often should I calculate CPH?

Accepted Answer

Monthly or quarterly tracking catches trends early. Annual calculation provides complete picture. Calculate by department, role level, or recruiting channel for actionable insights. Compare periods to measure improvement initiatives.

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