Recruitment Cost and Yield Ratios

Recruitment Cost and Yield Ratios Ratios are the numerical representation of
comparisons. They are normally stated as a percentage. The Recruiting Cost Ratio (RCR) is
one of those measurements. It looks at the cost per hire based on compensation rather
than headcount.

Recruiting Cost Ratio = ((External Costs = $100,000) + (Internal Costs = $100,000)) × 100
(Total First Year Compensation of Hires in Time Period)

The RCR tells you how much you spent recruiting for every dollar of first-year
compensation paid to the new hires.

Recruiting Cost Ratio = ((External Costs = $100,000) + (Internal Costs = $100,000)) × 100
(Total First Year Compensation = $2,000,000)
RCR = 10 percent

Obviously, the lower the percentage, the better (more efficient) the result.
Another measure of recruiting efficiency and effectiveness is the recruitment yield
ratio. It can be calculated at each step of the recruiting and hiring process to determine
how successful you are at each stage of the process.
• How many people were minimally qualified compared to total responses?
• How many people were sent to the hiring manager compared to minimally
qualified?
• How many people were interviewed compared to those sent to the hiring manager?
• How many people were hired compared to those interviewed?
At each state, you can compare a ratio or percentage. The greater the percentage,
the better.

Sharam Kohan
Sharam Kohan

Sharam Kohan: Biography

Sharam Kohan is a seasoned professional with an extensive background in law, human relations, and organizational leadership. Currently a degree candidate for an LLM at UC Berkeley Law, Sharam brings a unique blend of legal education, hands-on experience, and a deep commitment to social justice and human rights.

With a career that spans diverse sectors, Sharam's expertise extends far beyond the classroom. He has served as a Human Relations Commissioner, contributing his leadership to Alameda County’s Human Relations Commission, where he worked on initiatives to improve community relations and promote equity. His dedication to social change is also evident in his philanthropic efforts as a donor to organizations like FACES SF, which provides vital resources and support to the Bay Area’s underserved communities.

An advocate for labor and employment rights, Sharam holds a specialization in Employment Law from Temple University School of Law, which has furthered his ability to navigate complex legal frameworks. His professional journey includes leadership roles across human resources and operations, where he has honed his ability to manage teams, shape organizational culture, and implement effective strategies that drive success. He also holds SHRM certification, further solidifying his expertise in human resources management.

As a writer and thought leader, Sharam has authored multiple works that delve into complex philosophical and legal topics. His books, Judgment, a Priori Itself and Sartre’s Conception of Freedom, explore the intersections of law, philosophy, and human freedom, blending his academic background with a passion for intellectual inquiry. These works have garnered attention for their thoughtful analysis and exploration of complex ideas, establishing Sharam as a respected voice in both legal and philosophical circles.

Though not a traditional legal scholar, Sharam’s interdisciplinary approach to understanding law and society has made him a sought-after commentator on topics ranging from legal theory to organizational dynamics. His writing can be found on various platforms, including his blog at Harvard, where he shares insights on law, politics, and social issues.

Sharam Kohan is a dynamic and forward-thinking professional with the knowledge, experience, and passion to contribute meaningfully to the legal, social, and business landscapes.

For more on Sharam Kohan’s work, visit his blog at archive.blogs.harvard.edu/kohan and his author pages on Amazon, including Judgment, a Priori Itself and Sartre's Conception of Freedom.

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