What is the full form of CPH?
The full form of CPH is cost per hire.
What is the meaning of CPH?
CPH, or cost per hire, is a metric utilised to measure the expenses associated with the entire recruitment process while hiring a new employee. The costs entail those of sourcing, advertising, onboarding, training costs, etc.
What are the Key Components of CPH?
1. Internal Costs
- Compliance costs
- Administrative costs
- Training & Development
- Recruitment/sourcing staff costs.
- Hiring manager costs
2. External Costs
- Background checks
- Pre-screening expenses
- Sourcing expenses
- Technological expenses
- Travel expenses
- Marketing costs
- Employee referral expenses
- Signing bonus
- Job fair expenses
What are the Benefits of CPH?
1. Helps in Recruitment Efficiency
CPH helps organisations to understand the exact amount of money being spent to fill a single job role and helps them to analyse whether it is cost-effective and efficient or not.
2. Enhances Budget Planning and Prediction
It assists organisations with planning future budgets and forecasting money management by letting the management comprehend the average cost to recruit for different roles.
3. Identifies Weak Hiring Channels
CPH helps companies to compare costs across various sourcing channels, providing a fair idea about which channels are working and offering the best ROI, and the inefficient ones can be eliminated.
4. Enhances Recruitment Strategy
Organisations cutting down on CPH can effectively systematise processes, adopt innovation, alleviate manual tasks, and thereby accelerate productivity.
5. Backs Data-led Decision-Making
Leaders, Managers and HR heads can evaluate their expenses based on these metrics, enabling them to make intelligent and informed decisions in terms of vendor pricing and accordingly fix prices as per industry standards.
6. Accelerates Employer Image Investments
Comprehending CPH means that businesses will know exactly how much to invest in enhancing brand reputation, marketing, candidate experience, etc, without exceeding the budget.
7. Provides Technology Adoption Scope
CPH determines the drawbacks and gaps in the hiring process, driving companies to adopt advanced technology like AI and automation.
« Back to Glossary Index