Recruiting Efficiency
It is imperative to understand the distinction between Recruiting Cost Ratio and Recruiting Efficiency. The two concepts, though similar, should not be confused or used interchangeably. While RCR should be applied solely for budgeting and resource allocation, Recruiting Efficiency is a comparison tool—the best measure of recruiting efficiency across function, industry, geographic area, and organization size. To calculate Recruiting Efficiency, simply subtract the RCR from 1. This operation inverses the RCR and yields a percentage relative to 100; the higher the percentage, the more efficient the recruiting function. And because Recruiting Efficiency is a derivative of RCR, it calculates what cost-per-hire misses and provides a standard way to compare recruiting efficiency across positions.
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