How do you incorporate diversity and inclusion goals into your cost per hire strategy?

Diversity and inclusion (D&I) are not only ethical and social imperatives, but also strategic advantages for any organization. However, hiring diverse talent can be challenging and costly, especially in competitive markets. How do you balance your D&I goals with your cost per hire (CPH) strategy? Here are some tips to help you optimize both aspects of your corporate recruiting process.

1 Define your D&I objectives

Before you start measuring your CPH, you need to have a clear vision of what diversity and inclusion mean for your organization. What are the specific gaps and opportunities you want to address? How do you align your D&I objectives with your business goals and values? How do you communicate your D&I commitment to your candidates and employees? Having a well-defined D&I framework will help you set realistic and relevant targets, as well as track your progress and impact.

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Marc Hammer

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If possible, integrate a D&I scorecard prominently into your hiring dashboard to measure diversity metrics in real time. This can help ensure that D&I objectives are not just a one-off goal, but an ongoing, measurable effort.

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2 Calculate your CPH accurately

CPH is the average amount of money you spend to hire a new employee. It includes both internal and external costs, such as advertising, sourcing, screening, interviewing, testing, background checks, relocation, and onboarding. To calculate your CPH, you need to divide the total hiring costs by the number of hires in a given period. However, this formula can be misleading if you don't account for the quality and retention of your hires. A low CPH may indicate a high turnover rate, a poor candidate experience, or a lack of diversity. Therefore, you should also consider other metrics, such as time to fill, quality of hire, and diversity of hire, to evaluate your hiring efficiency and effectiveness.

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Marc Hammer

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CPH doesn´t effectively refer to D&I - therfore you could include "diversity recruitment costs" as a sub-metric within the CPH. This should include initiatives specifically aimed at increasing diversity, such as targeted outreach or diversity-focused career fairs, to provide a clearer picture of D&I investment.

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3 Optimize your sourcing channels

One of the key factors that affect your CPH and D&I outcomes is the quality and diversity of your talent pool. How do you reach and attract diverse candidates who match your criteria and culture? You need to diversify and optimize your sourcing channels, such as job boards, social media, referrals, events, and partnerships. You should also leverage data and analytics to identify the most cost-effective and inclusive sources for your roles. For example, you can use tools like Google Analytics, LinkedIn Talent Insights, or Indeed Analytics to track the performance and ROI of your job postings, campaigns, and outreach efforts.

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4 Streamline your hiring process

Another way to reduce your CPH and improve your D&I results is to streamline your hiring process. This means eliminating unnecessary steps, automating repetitive tasks, and standardizing your criteria and methods. For example, you can use software like Applicant Tracking Systems (ATS), video interviews, or pre-employment assessments to save time and money, as well as to reduce bias and increase consistency. You should also review your job descriptions, screening questions, and interview questions to ensure they are clear, relevant, and inclusive. Moreover, you should provide timely and constructive feedback to your candidates, as well as solicit feedback from them, to enhance your employer brand and reputation.

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Marc Hammer

LinkedIn Top Voice | Executive Search - Digital & Tech | Interim Management | Leadership Advisory | Board Members
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Save time by implementing AI-driven tools to analyse job descriptions (a trained ChatGPT) and interview practices for unconscious bias. This technology-driven approach helps ensure an unbiased, inclusive hiring process while keeping costs in check.

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5 Train and engage your hiring team

Finally, you need to train and engage your hiring team to support your CPH and D&I goals. Your hiring team includes not only your recruiters, but also your hiring managers, interviewers, and decision-makers. You should ensure that they are all aligned on your D&I vision, values, and expectations, as well as on your CPH strategy and budget. You should also provide them with the necessary skills and tools to conduct fair and effective hiring practices, such as unconscious bias training, diversity awareness training, or behavioral interviewing techniques. Additionally, you should recognize and reward their contributions and achievements, as well as encourage their collaboration and feedback.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you incorporate diversity and inclusion goals into your cost per hire strategy?

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1 Define your D&I objectives

2 Calculate your CPH accurately

3 Optimize your sourcing channels

4 Streamline your hiring process

5 Train and engage your hiring team

6 Here’s what else to consider

Corporate Recruiting

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