“Cost per Hire” Called “Most Dangerous Metric in Recruiting”

Companies look for effective measurements of their performance, but recent research/analysis indicates that pressing for a reduced cost-per-hire is counterproductive. Analysis has shown that the average cost per hire is roughly $4800, or 10% of a starting salary of $48,000. If reducing that cost per hire leads to longer time to fill a given position, then -the lost orientation time and development to productive status likely costs the company considerably more than the savings could ever be, especially when the additional recruiting time also takes away from managers’ productive time. The research behind this was conducted by Dr. John Sullivan, who has been an HR consultant and authority for decades.