ISO/TS 30407, Human resource management – Cost-Per-Hire, has just been released. It’s another technical specification in an area of business that has not been part of the ISO subject areas until recently. It is evidence of the increasing importance of standardization in industry sectors trying to improve professionalism using standards and certification.
Perhaps you have noticed commercials on TV for SHRM, the Society for Human Resource Management. SHRM is one of a growing number of professional organizations entering into the standardization community. Work done at the national level by SHRM is paralleled by work at the International level at ISO. So you will see more standardization in this space as the professional organizations increase areas of agreement.
ISO/TS 30407 addresses three types of CPH formulas. They are:
- Cost-per-hire internal (CPHI)
- Cost-per-hire comparable (CPHC)
- Hire-cost-ratio (HCR)
This formulas are used throughout the HR (Human Resource) industry. The three are provided because companies operate differently. But adhering to one standardized formula or another will improve methodologies for comparison across organizations.
What are the Cost-per-hire metrics used for? They measure the cost of recruitment. Benefits not only include understanding your true costs, but also for identifying areas where you can make improvements. Data can be integrated into your budget, workforce satisfaction and performance metrics, benchmarking, and other management activities. You may even use it to compare the cost of in-house hiring to the use of third parties for recruitment.
ISO/TS 30407 not only covers each metric in detail, it also provides you with information on how to assemble your CPH metrics. Data collection and evaluation are included in this 22 page specification.
If you’d like to improve the performance of your HR department, consider using standards as a tool for improvement. Search for and order them at the Document Center Inc. webstore, www.document-center.com. Here is a link to the order page for ISO/TS 30407 for your convenience.
If you’re interested in certification, contact SHRM or any of the other associations for HR in the region where you are located. Societies like SHRM are a wealth of information, a resource for standards activities, and providers of certification for your profession.
Once you’re on the path to certification, you may need additional standards. Since Document Center Inc. aggregates publications from all over the world, we are a perfect partner for compliance documentation needs. If you have additional questions or need compliance support, get in touch with us. You can reach us by phone (650-591-7600) or email (email@example.com). We’ve been in business since 1982. Make us your Standards Experts!