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Source Cost Per Hire (SCPH): Key Staffing Metrics Series

Date:

December 1, 2008

This is the sixth article in a series that will focus on Key Staffing Metrics that you can use to measure the effectiveness of your HR practices.

The focus of this article will be on calculating your Source Cost Per Hire (SCPH). The Society for Human Resource Management (SHRM) has published the following formula:

SCPH = (AC + AF + RB + NC )  / H

Legend:

AC : Advertising costs

AF : Agency fees

RB : Referrals bonuses

NC : No-cost hires such as free referrals and unsoliticited resumes

H : Total Hires

By measuring your Source Cost Per Hire (SCPH) you can start to get a handle on how much you are paying for source your new hires. Once you start measuring it and become aware of where the money is going then you can allocate more funds to sources that are producing results and less to sources that are less effective. The goal is to work on bringing the Source Cost Per Hire down.

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