Cost Per Hire Solution

STEP 0: Pre-Calculation Summary
Formula Used
Cost Per Hire = (External Recruiting Expenses+Internal Human Resource Expenses)/Successful Hires
CPH = (ERE+HRexp)/SH
This formula uses 4 Variables
Variables Used
Cost Per Hire - Cost Per Hire represents the total cost of hiring an employee.
External Recruiting Expenses - External Recruiting Expenses refers to the Money spent to pay individual recruiters, recruiting agencies or staffing firms.
Internal Human Resource Expenses - The Internal Human Resource Expenses refers to the funds allocated to hiring, salaries, benefits, training, succession planning, workforce engagement, and employee wellness planning.
Successful Hires - Successful Hires is defined as the ability to attract, select, and hire the best candidates, on time and on budget.
STEP 1: Convert Input(s) to Base Unit
External Recruiting Expenses: 550 --> No Conversion Required
Internal Human Resource Expenses: 5000 --> No Conversion Required
Successful Hires: 13 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
CPH = (ERE+HRexp)/SH --> (550+5000)/13
Evaluating ... ...
CPH = 426.923076923077
STEP 3: Convert Result to Output's Unit
426.923076923077 --> No Conversion Required
FINAL ANSWER
426.923076923077 426.9231 <-- Cost Per Hire
(Calculation completed in 00.004 seconds)

Credits

Created by Kashish Arora
Satyawati College (DU), New Delhi
Kashish Arora has created this Calculator and 25+ more calculators!
Verified by Vishnu K
BMS College of Engineering (BMSCE), Bangalore
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Cost Per Hire Formula

Cost Per Hire = (External Recruiting Expenses+Internal Human Resource Expenses)/Successful Hires
CPH = (ERE+HRexp)/SH

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 (HRexp) & 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.

FAQ

What is 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 and is represented as CPH = (ERE+HRexp)/SH or Cost Per Hire = (External Recruiting Expenses+Internal Human Resource Expenses)/Successful Hires. External Recruiting Expenses refers to the Money spent to pay individual recruiters, recruiting agencies or staffing firms, The Internal Human Resource Expenses refers to the funds allocated to hiring, salaries, benefits, training, succession planning, workforce engagement, and employee wellness planning & Successful Hires is defined as the ability to attract, select, and hire the best candidates, on time and on budget.
How to calculate 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 is calculated using Cost Per Hire = (External Recruiting Expenses+Internal Human Resource Expenses)/Successful Hires. To calculate Cost Per Hire, you need External Recruiting Expenses (ERE), Internal Human Resource Expenses (HRexp) & Successful Hires (SH). With our tool, you need to enter the respective value for External Recruiting Expenses, Internal Human Resource Expenses & Successful Hires and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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