Top Diversity Measures and Metrics: Cost-per-Diverse Hire

In my last post, I introduced cost-per-hire, which tells you how much it costs for each person you bring into your organization. Cost-per-diverse hire tells you how much it costs for each diverse employee hired (e.g., women, the physically challenged, African Americans, Latinos, Asian Americans and Native Americans). It allows you to compare hiring costs between different employee demographics and categories. Most significantly, it tells you how effective you are at hiring diverse candidates per dollar unit of cost (i.e., whether you are using recruitment sources/techniques that are financially successful). Here is a simple formula you can use to determine cost-per-diverse hire:

• CPDH = Total Hiring Costs/Number of Diverse Hires in a Designated Period
  
• Sample Hiring Costs: Advertising Costs (AC), Agency Fees (AF), Job Fair Costs (JF), Referral Bonuses (RB), Travel and Relocation Expenses (TR), Staff Costs (SC) and Miscellaneous Expenses (ME)
  
• Example: $18,000 (AC) + 24,000 (AF) + 5,000 (JF) + 12,000 (RB) + 114,000 (TR) + 56,000 (SC) + 16,000 (MISC) = $245,000 ÷ 20 new diverse hires = $12,250.00 per diverse hire.

Next Post: November 18, 2013 – Top Diversity Measures and Metrics: Candidate Pool Diversity Percentage