How To Calculate Cost per Hire in BQE CORE | Arithmix

Calculating cost per hire is an essential aspect of any business that wants to maintain a healthy bottom line. It helps you understand the total cost incurred in hiring a new employee, from the recruitment process to the onboarding process. In this article, we'll explore what cost per hire is, when it's valuable to calculate it, and how to calculate it using BQE CORE.

What Is Cost per Hire?

Cost per hire is a metric used to determine the total cost incurred in hiring a new employee. It includes all the expenses incurred during the recruitment process, such as advertising, job fairs, and recruiter fees. It also includes the cost of onboarding, such as training, orientation, and benefits. By calculating the cost per hire, you can determine the effectiveness of your recruitment process and identify areas where you can reduce costs.

Calculating cost per hire is not just about adding up the expenses incurred during the recruitment process. You also need to consider the time and effort invested by your HR team and hiring managers. For example, if your HR team spends 20 hours on a recruitment process, you need to factor in the cost of their time and effort.

When Is It Valuable To Calculate Cost per Hire?

Calculating cost per hire is valuable for any business, regardless of its size. It helps you understand the total cost of hiring a new employee and identify areas where you can reduce costs. It's especially valuable for businesses that have a high turnover rate or are experiencing rapid growth.

By calculating cost per hire, you can determine the effectiveness of your recruitment process and identify areas where you can improve. For example, if you find that your cost per hire is higher than the industry average, you may need to re-evaluate your recruitment process and identify areas where you can reduce costs.

How to Calculate Cost per Hire in BQE CORE

Calculating cost per hire in BQE CORE is easy. Here's how:

1. First, gather all the expenses incurred during the recruitment process, such as advertising, job fairs, and recruiter fees.
2. Next, gather all the expenses incurred during the onboarding process, such as training, orientation, and benefits.
3. Factor in the time and effort invested by your HR team and hiring managers.
4. Add up all the expenses and divide by the number of hires made during the period.

For example, if you spent $10,000 on recruitment and onboarding expenses and made 5 hires during the period, your cost per hire would be $2,000.

Calculating cost per hire in BQE CORE is essential for any business that wants to maintain a healthy bottom line. By understanding the total cost of hiring a new employee, you can identify areas where you can reduce costs and improve your recruitment process. So, start calculating your cost per hire today and take your business to the next level!

How Do You Calculate Cost per Hire in BQE CORE

BQE CORE itself isn’t naturally geared towards letting you calculate complex metrics like Cost per Hire. As an alternative, teams typically use products like Arithmix to import data from BQE CORE and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like BQE CORE, combine it with data from other systems, and create calculations like Cost per Hire.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating Cost per Hire in Arithmix

Calculating metrics like Cost per Hire is simple in Arithmix. Once you've created your free account, you’ll be able to import your BQE CORE data, and use it to create natural language formulas for metrics like Cost per Hire.

Arithmix is designed to give you the power to build any calculations you want on top of your BQE CORE data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.