Cost-per-hire

Cost-per-hire is a recruitment metric that calculates the total cost incurred to hire a new employee. It includes expenses such as job advertisements, recruiter salaries, recruitment software, interview costs, and onboarding expenses. This metric helps companies assess and optimize their hiring budget.

How do you calculate the cost per hire?

Cost per hire is calculated by dividing the total recruitment expenses by the number of hires in a specific period.

Formula:

Cost Per Hire=Total Recruitment Costs / Number of Hires

Recruitment costs may include

• Job ads and sourcing tools
• Recruiter salaries or agency fees
• Interview costs (travel, time, tools)
• Background checks and assessments
• Onboarding and training expenses