The Undetected Expenditure

Have you experienced failing to meet the right talent and spending so much time with great, but unfit potential new hires for your company? Ever wonder how much time you’ve invested with unsuitable candidates or new hires who eventually leave a day or two after you hire them? What is the true cost per hire (CPH) and are you actually spending more versus getting your own Recruitment Process Outsourcing (RPO) Team?

Partnering with an RPO providers does not only save you money, it also allows you to allocate your time to the important functions of the business.

Here is a standard formula for calculating you CPH that the Society of Human Resource Management (SHRM) and American National Standards Institute (ANSI) created:

Cost per hire is the total amount of money you spend when you hire or your recruiting costs, divided by the total number of new hires.   


To give you context, let’s say you plan to hire 100 people in a year and your cost per hire is P50,000.00, you can estimate a total expense of P5,000,000.00 for just recruiting. 

Companies who are globally updated are now leaning towards outsourcing their recruitment or RPO providers. Having and RPO partner not only gains you time to focus on your business but it also allows you to have cost savings!


Using the CPH formula, you will realize how much you’re spending on your recruitment operations. Imagine, if you could allocate your time and budget to operational management instead, how much growth can your company obtain? How much of your time can be reallocated to strategic planning and implementation instead of trying to find the right talent? What’s your recruitment process like? We have had clients where executives used to spend time interviewing candidates until they realized that one (1) hour of each executive members’ time cost almost P3,000.00!  If you have 3 executives in the panel, it means you’re spending P9,000.00 just to interview one (1) candidate! Is that worth it when someone else can provide you with top notch hires with the same or better quality plus cost savings?

Getting an RPO Partner means that you are maximizing, not just your time, but also cutting costs on your cost per hire. If you can measure your CPH, you will see how much you’re really spending, and how much you could save by outsourcing your entire recruitment function to recruitment experts. In addition to cutting costs, you’ll have a team who can enhance your recruitment process, who’s also familiar with the scientific discipline of workforce management. Workforce management (WFM) is the process by which you can maximize the productivity of new hires (or even current employees) and forecasting manpower requirements. You basically have an RPO Team managing your manpower requirements and providing you with the analytics behind your workforce.

We bet you didn’t know your unexpected expenditures, didn’t you? It’s not too late! Be at par with global recruitment standards and be strategic about your hiring. Get the best talent without having to lift a finger, cutting costs, and maximizing your budget!


Q2 HR Solutions’ RPO Team can help you!



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