Recruitment Industry

How to Reduce
Cost per Hire in HRM?

April 27, 2024


Delta International

Cost, Per, Hire, HRM

How to Reduce Cost per Hire in HRM?

People searching this keyword are likely trying to find ways to reduce the cost of hiring new employees. This could be for a variety of reasons, such as:

  • To increase their profit margins.
  • To stay competitive.
  • To improve their bottom line.

Here are some specific problems that people searching this keyword may be trying to solve:

  • How to find the best candidates for the lowest price.
  • How to streamline the hiring process.
  • How to negotiate better salaries and benefits with candidates.
  • How to avoid costly hiring mistakes.

By understanding the problems that people searching this keyword are trying to solve, you can create content that addresses their needs and helps them achieve their goals.

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What is Cost Per Hire (CPH)?

Cost per hire (CPH) is a metric that measures the average cost of hiring a new employee. It is calculated by dividing the total cost of hiring by the number of new hires.

CPH can be used to track the efficiency of your hiring process and identify areas where you can improve. It can also be used to compare your hiring costs with other businesses in your industry.

There are a number of factors that can affect your CPH, including:

  • The salary and benefits you offer
  • The length of your hiring process
  • The recruiting methods you use
  • The quality of your candidates

By understanding the factors that affect your CPH, you can take steps to reduce your costs and improve your hiring efficiency.

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Strategies to Reduce Cost Per Hire

There are a number of ways to reduce the cost of hiring new employees. Here are a few tips:

  • Use a recruitment agency: Recruitment agencies can help you find qualified candidates for your open positions, and they can also negotiate salaries and benefits on your behalf. This can save you time and money in the long run.
  • Streamline your hiring process: The more efficient your hiring process is, the less money you will spend on it. Make sure you have a clear and concise job description, and that you are using the right tools and technology to screen candidates.
  • Negotiate salaries and benefits: Don't be afraid to negotiate with candidates on salaries and benefits. You may be able to get a good candidate for a lower price than you initially expected.
  • Use social media and online job boards: Social media and online job boards can be a great way to find qualified candidates for your open positions. These platforms are often free to use, and they can reach a large number of potential candidates.
  • Consider hiring interns or entry-level employees: Interns and entry-level employees can be a great way to get the work done without having to pay top dollar for experienced workers. These employees can also be a great source of new ideas and fresh perspectives.

By following these tips, you can reduce the cost of hiring new employees and improve your bottom line.


In this article, we have discussed the importance of reducing cost per hire (CPH) and provided strategies to help you achieve this goal. By implementing these strategies, you can save your organization money and improve your hiring process. To control your CPH while hiring overseas in gulf, you should contact a top recruitment agency for Saudi Arabia to make whole recruitment process streamline.

Recruitment Industry: Hiring Tips

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