What is Cost Per Hire?
Cost Per Hire is a recruiting metric that measures the costs associated with the process of hiring new employees. These include expenses such as sourcing and recruitment advertising costs, onboarding, referral bonus program costs, etc. For example, if you hire 50 people for the year, and you spend an estimated $100,000 on the hiring process annually, that would mean that your cost per hire is $2,000. It’s a great way to measure if your recruitment process is optimized relative to your industry and roles.
How to Calculate Cost Per Hire?
Cost Per Hire calculator uses Cost Per Hire = (External Recruiting Expenses+Internal Human Resource Expenses)/Successful Hires to calculate the Cost Per Hire, The Cost Per Hire formula is defined as the total cost of hiring an employee. The cost includes posting job adverts, payment of recruiting agencies, and other related costs. Cost Per Hire is denoted by CPH symbol.
How to calculate Cost Per Hire using this online calculator? To use this online calculator for Cost Per Hire, enter External Recruiting Expenses (ERE), Internal Human Resource Expenses (HR_{exp}) & Successful Hires (SH) and hit the calculate button. Here is how the Cost Per Hire calculation can be explained with given input values -> 555 = (550+5000)/13.