Revenue per employee – the true value of recruitment

Cost center or “profit generating” department?

I never understand why recruitment is seen as a cost centre. Instead it should be measured against the value it delivers. Because, let’s face it, without the right people no company will survive, let alone thrive.

The most forward thinking companies base their value of recruitment on revenue per employee: If the revenue per employee is £20,000 and you hire 100 people, the value equals £2m. This reframe gives a different perspective, doesn’t it?

We know that recruitment alone isn’t responsible for generating the £2m, but if they don’t bring in the people with the right passion and potential, the endeavour will fall at the first hurdle.

Revenue per employee

Revenue per employee – the true value of recruitment

Valuable insights

  1. Don’t just take the easy option: hire for pedigree. That just shows you are not understanding the big picture and are more concerned about covering your behind. Invest some time creating talent pools it will pay you back in the future.
  2. Push back against hiring decisions that you don’t agree with. You are the people specialist; you have spoken with more than the 3 that are being interviewed; and you know what the market is like.
  3. Invest into the future – create connections and build relationships with people that you might hire in a year’s time. You are looking and investing in talent not only putting bums on seats.
  4. Demand the tools that make your life easy, so you can focus on what really matters: Engaging with candidates and ensuring that the people that get through this door not only deliver the existing revenue per employee but even lift it up.
  5. For your performance measurements remember that time to hire, cost per hire are really important, but your eye always needs to be on the revenue per employee. That’s all that matters!

So change where you to and get going. The future starts today.

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