Metric Snapshot: Human Capital Management

Metric Snapshot: Human Capital Management

(Houston, TX - May 1, 2007) - APQC, an internationally recognized resource for process and performance improvement, has released a current metric snapshot of the research in the source, recruit and select process through its Open Standards Benchmarking CollaborativeSM (OSBC). These current results reveal the total costs of the process "source, recruit and select" per new hire (cost effectiveness).

Metric Snapshot: Human Capital Management

(Houston, TX - May 1, 2007) - APQC, an internationally recognized resource for process and performance improvement, has released a current metric snapshot of the research in the source, recruit and select process through its Open Standards Benchmarking CollaborativeSM (OSBC). These current results reveal the total costs of the process "source, recruit and select" per new hire (cost effectiveness).

According to the research, there is a wide gap in the cost to hire new employees between top-performing organizations and low performers.  As shown in the graph, APQC's data indicates that high performers spend $504 per new hire compared to $5,485 in low-performing organizations.

When applied to the number of new hires in a low performing organization, managers can estimate the potential cost savings achievable by attaining top performing benchmark status and communicate the value proposition for adopting best practices in the source, recruit, and select process.

The cost per hire metric calculation includes the cost elements of personnel, systems, overhead, other and outsourcing for the process source, recruit and select.

This research found good performance was linked to some of the following practices:

• Different labor sourcing strategies/guidelines by function
• Different sourcing methods used to build in flexibility in the workforce 
• Having the ability to quickly and effectively modify staffing levels

ABOUT APQC

APQC, a member-based nonprofit organization founded in 1977, offers organizations free access to benchmark their human capital management functions to examine cost, cycle time, process efficiency and staff productivity.
Data presented in this snapshot is obtained from the Open Standards Benchmarking CollaborativeSM (OSBC) database. For more details or to benchmark performance at no charge, visit www.apqc.org/osbc or call 800.776.9676.

Media Contact

Liz Greene
214.350.7236
liz@mpdventures.com
 

Note: Additional metrics, high resolution charts, case studies and interviews are also available to support specific editorial needs.