How To Calculate Cost per Hire in SAP | Arithmix

Calculating cost per hire is an essential metric for any organization to measure the effectiveness of their recruitment process. It helps to identify the cost of hiring a new employee and provides insight into the overall recruitment budget. In this article, we will discuss the steps to calculate cost per hire and its significance in the recruitment process.

What Is Cost per Hire?

Cost per hire is the total cost incurred by an organization to recruit a new employee. It includes all the expenses associated with the recruitment process, such as job postings, advertising, background checks, interviews, and other administrative costs. The cost per hire is calculated by dividing the total recruitment cost by the number of new hires made during a specific period.

For example, if an organization spends $10,000 on recruitment and hires 5 employees, the cost per hire would be $2,000.

When Is It Valuable To Calculate Cost per Hire?

Calculating cost per hire is valuable for organizations in several ways. Firstly, it helps to identify the most effective recruitment channels and strategies that yield the best results. By analyzing the cost per hire for each channel, organizations can allocate their recruitment budget more effectively and focus on the most cost-effective channels.

Secondly, it helps to identify areas where the recruitment process can be optimized to reduce costs. For instance, if the cost per hire is high due to a lengthy recruitment process, organizations can streamline the process to reduce costs and improve efficiency.

Lastly, cost per hire provides insight into the overall recruitment budget, enabling organizations to plan and budget for future recruitment needs accurately.

In conclusion, calculating cost per hire is an essential metric for any organization to measure the effectiveness of their recruitment process. It helps to identify the most cost-effective recruitment channels, optimize the recruitment process, and plan for future recruitment needs. By following the steps outlined in this article, organizations can calculate their cost per hire and use the insights gained to improve their recruitment process.

How Do You Calculate Cost per Hire in SAP

SAP 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 SAP 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 SAP, 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 SAP 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 SAP 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.