October 2008

TRACKING RECRUITMENT DATA TO MAXIMIZE EFFECTIVENESS

As organizations continue to spend more budget dollars on recruitment, it becomes increasingly important to understand the effectiveness of recruitment alternatives. Some of the ways to analyze recruitment productivity include:

Cost per hire is a measure of the dollars spent to generate one hire. Cost per hire is calculated by adding all of the incremental costs for hiring for one position. It includes such items as recruitment advertising costs, agency fees, literature costs, travel expenses, meeting room sites and mailing costs. Some organizations include overhead costs, such as salaries of recruitment personnel and office overhead; whatever method used should be applied consistently.

To calculate, add all recruitment costs, and divide by the number of hires. Generally, cost per hire data is best used as an internal guide to determine relative recruitment effectiveness.

Cost per hire should not be the only calculation done to determine recruitment effectiveness. One recruitment activity may yield an inexpensive cost per hire, for example, but may not provide the quality of candidates desired (as measured by retention ratios).

To get a total picture of recruitment effectiveness, calculate cost per recruitment activity (all costs per each recruitment activity, e.g., open house, direct mail campaign), selection or hire ratios (number of those making application per activity or position and divided by the number of those selected or hired), and retention ratios (number of those retained after a period of time for each recruitment activity or position).

By tracking recruitment data, organizations can better evaluate their recruitment effectiveness, and determine which strategies yield the best results.

Selected Items from Cathy's Calendar for 2008

Cathy Fyock and Sandy Allgeier Join Forces to Present Strategic Workshop

Cathy Fyock and Sandy Allgeier of Allgeier Consulting will be co-presenting a day-long strategic session (7 strategic HRCI credit hours) at the Oklahoma SHRM Conference in 2009 on the topic, High Powered Consulting Skills for Boosting Bottom Line Impact. If your chapter, state conference, or in-house HR organization is interested in exploring a one- or two-day program providing skills for HR professionals in creating a strategic alliance, please contact us today!

About Cathy Fyock
Are you looking for a high-content speaker for your next conference or meeting? Call or email Cathy to find out how she can work with you to meet your specific goals and objectives.

Cathy Fyock, CSP, SPHR, is an employment strategist-helping organizations develop strategies to recruit and retain top talent in an aging and changing marketplace. For nearly 20 years she has combined her knowledge of work-force issues and her talents as a speaker to provide innovative and inspirational learning events. She has helped organizations attract top talent, reduce turnover, and improve productivity in a volatile labor market.

Cathy has joined Resources Global Professionals as their Director of Recruiting for the Louisville office. In this role she practices "hiring the best" while focusing on attracting senior-level professionals. She also is responsible for business development.

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