So let's take the time to repeat once again, what is COP and what does it mean. CPH is the total cost of welcoming a new employee to the business, including recruitment, purchase of equipment assets, instructions to join the system, administrative costs and a few other benefits. This index can change with a wide or narrow range depending on the size of the business, the number of recruitment channels that the company is using, the rank of the vacancy and the strength and effectiveness of its implementation in the field internal.
Why should HR care about equitization?
In all fairness, equitization is not the only way to measure return on invested capital (ROI), there are many other factors that are also relevant to consider. For example: Candidate quality? Information channel for candidates to know about recruitment information? How many resumes do you have to approach to successfully recruit one person? On average, how long does an employee stay with the company? Do you measure employer brand value?
But either way, estimating the equitization is an important task. Capturing this number will help HR managers make smarter investment decisions, calculate employee referral bonuses and save costs for the business in the long run. So it takes learning to master how to read and analyze these important data. Thanks to that, you will really know how much you should invest, how much is enough to attract resumes, organize interviews and decide to hire people.
Benefits of choosing the right recruitment channel
Through observation, the recruitment channel has a great impact on many issues such as: The ability to attract candidate profiles, the time to successfully recruit an employee and of course the CPH index. Therefore, choosing the right recruitment channel will definitely bring a lot of benefits to the recruitment process in particular and the business in general.
Meanwhile, at present, the need to reduce the equitization index to a low level is always a concern of many people working in recruitment. This leads to the inevitable result that employers will face a series of options such as: Changing recruitment partners, paying bonuses to employees for introducing potential candidates, increasing recruitment and promotion brands through social media channels, adapting and accessing new recruitment solutions…
Recruitment, one of the three main tasks of human resource work, regardless of the period, is always given a significant "review" by business leaders. Because every boss is interested in whether he has a stable, strong, and qualified team of employees with enough expertise to operate and bring the business to the goal or not? Besides, the goal of recruiting the best personnel at the most appropriate cost will always be the dream of both bosses and HR professionals.
So as long as people are still considered the most valuable capital of an organization, recruitment is still a really seriously invested activity, then don't forget the things we just shared about equitization.
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