Recruiting Cost Ratio (RCR)

Defines a formula and methodology comparing the total cost of hiring against the total compensation of the newly hired individuals in the first year of their employment. This formula varies from the CPHI or CPHC only in the denominator; whereas CPHI or CPHC are ratios of costs to the number of hires, the RCR is a ratio of costs to total first-year annual compensation of the new hires.

 

Per ANSI / SHRM Standard:

https://www.shrm.org/resourcesandtools/business-solutions/documents/shrm_ansi_cph_standard.pdf

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