Cost-per-Hire Metric Standard Open for Review

By SHRM Online staff Feb 7, 2011

A proposed HR standard for measuring cost per hire (CPH)—the first of its kind in the United States to help organizations calculate recruiting costs—is available for public review and comment.

March 18, 2011, is the deadline to submit comments on the 44-page draft. Once it is adopted, organizations will be able to use the standard to determine accurate and comparable costs of recruitment through a standard algorithm that calculates recruiting costs, the Society for Human Resource Management (SHRM) announced in a statement released Feb. 4, 2011.

The proposed standard has been developed by a SHRM-led taskforce operating under the auspices of the American National Standards Institute (ANSI). ANSI is the authorized agent for the U.S. government for coordinating standards development. In February 2009 it designated SHRM as the exclusive U.S. developer of HR standards.

“Previously, organizations had numerous and conflicting approaches for determining cost-per-hire,” said Lee Webster, director of HR standards at SHRM. “The proposed draft standard,” he said in a news release, “may soon be used by companies that would prefer to use a metric that consistently and comparably measures the performance of their staffing efforts.”

The Standard for Measures and Metrics Taskforce is led by Gerry Crispin, SPHR, principal at CareerXroads, and workgroup leader Jeremy Shapiro, an executive director in HR at Morgan Stanley. The taskforce has been working since 2009 on crafting “Draft Standard 6001: Cost Per Hire,” which is available for review as of this writing.

A central requirement in developing the standard was to provide standard tools while recognizing that organizations operate differently, the taskforce said in the executive summary.

“One organization may incur a type of cost another organization may not,” the document continued. “This standard allows for variance within organizations, while still providing a robust methodology for creating a standard CPH statistic.”

If public comment results in substantive changes to the draft, the taskforce will rework it and re-submit it for public review,according to Webster. If there are no substantive changes, the taskforce will vote to send the proposed standard to ANSI for final review. At best it takes five months after public review before ANSI adopts the proposed standard, he said.

Once adopted, the standards will be in effect for five years and will be available to the public for free.

Questions about the proposed draft standard or about how to submit comments shouldbe directed to Webster at (703) 535-6047 or e-mail Individuals and organizations can view or submit comments on the proposed draft standard by visiting the SHRM balloting web site.

Related Articles:

SHRM to Craft U.S., Global HR Standards, HR News, February 2009


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