According to ACAS the average cost of replacing a single employee is £30,000. What are you doing to ensure this startling base cost does not exceed your employers’ expectations, and the ‘right’ employee is recruited?
Cost per hire is the total sum of money needed to take on a new employee into your organisation (HR Zone). Including everything from internal to external costs. It is one of the most frequently used recruiting metrics, varying from business to business(dependant on organisational size, infrastructure and specific needs).
And whilst understanding this metric is a bonus for improving efficiency of your HR department, poor planning can potentially lead to bad hires, for example; according to REC a mid-manger with a £42,000 salary can cost the business over £132,000 if hired poorly, as a result of HR departments cutting corners in trying to find the ‘right’ employee.