CPH (Cost Per Hire) is a standard measurement used in recruitment to calculate how much money a company spends to hire one new employee. This cost includes things like job posting fees, recruiter time, background checks, and other related expenses. It's similar to other recruitment metrics like Time to Fill or Quality of Hire. Understanding CPH helps companies budget for hiring and measure how efficient their recruitment process is. When you see this term in resumes or job descriptions, it usually indicates experience with recruitment analytics and budget management.
Reduced CPH by 35% through implementation of new sourcing strategies
Managed recruitment budget achieving CPH below industry average
Tracked and reported on Cost Per Hire metrics across all departments
Typical job title: "Recruitment Analytics Specialists"
Also try searching for:
Q: How would you develop a strategy to reduce Cost Per Hire while maintaining quality of candidates?
Expected Answer: A strong answer should include multiple approaches like improving sourcing channels, implementing employee referral programs, using recruitment technology effectively, and measuring the ROI of different recruitment methods.
Q: How do you calculate CPH and what factors should be included?
Expected Answer: Should explain that CPH includes both internal costs (recruiter salaries, HR time) and external costs (job board fees, agency fees, advertising) divided by the number of hires. Should also mention tracking both visible and hidden costs.
Q: What tools have you used to track CPH and other recruitment metrics?
Expected Answer: Should mention experience with ATS systems, HR analytics platforms, or spreadsheet tracking methods, and explain how they used these tools to monitor and report on recruitment costs.
Q: How do you benchmark CPH against industry standards?
Expected Answer: Should discuss using industry reports, professional networks, and internal historical data to establish reasonable CPH targets and explain how different factors affect CPH in various industries.
Q: What is CPH and why is it important in recruitment?
Expected Answer: Should be able to explain that CPH helps measure recruitment efficiency and budget management, and understand basic components that go into calculating it.
Q: What factors can influence Cost Per Hire?
Expected Answer: Should identify basic factors like job advertising costs, recruitment tools and software, time spent by HR team, and external agency fees if used.