The American National Standards Institute (ANSI) has approved the cost-per-hire standard as the first American national HR standard sponsored by the Society for Human Resource Management. The cost-per-hire standard provides a tool for organizations to reliably determine employee recruitment costs through an accepted algorithm that includes elements such as addressing organizations? specific hiring cultures and requirements.
?The approval of this standard as an American National Standard establishes a milestone for the HR profession. It affirms that HR has indeed a ?technology? that its professionals must apply, improve and preserve,? said Lee Webster, SHRM?s director of HR standards. ?The HR profession and its stakeholders can now begin to make business decisions based on credible, transferable, and inter-operable human capital analytics.?
A group of HR practitioners, academics, consultants and managers from public and private organizations across the United States developed the cost-per-hire standard. SHRM sponsored and advised the group. ?The team wanted to create a standard that would be both accepted by the CFO?s office and practical to implement by HR,? said Jeremy Shapiro, cost-per-hire workgroup chairman and executive director of Morgan Stanley. ?I think we hit the mark.?
Source: Society for Human Resource Management; www.shrm.org.
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