Cost Per Hire Calculator

✖External Recruiting Expenses refers to the Money spent to pay individual recruiters, recruiting agencies or staffing firms.ⓘ External Recruiting Expenses [ERE]			+10% -10%
✖The Internal Human Resource Expenses refers to the funds allocated to hiring, salaries, benefits, training, succession planning, workforce engagement, and employee wellness planning.ⓘ Internal Human Resource Expenses [HR_exp]			+10% -10%
✖Successful Hires is defined as the ability to attract, select, and hire the best candidates, on time and on budget.ⓘ Successful Hires [SH]			+10% -10%

✖Cost Per Hire represents the total cost of hiring an employee.ⓘ Cost Per Hire [CPH]

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Formula

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Cost Per Hire

Formula

`"CPH" = ("ERE"+"HR"_{"exp"})/"SH"`

Example

`"426.9231"=("550"+"5000")/"13"`

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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+HR_exp)/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+HR_exp)/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)

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Credits

Created by Kashish Arora

Satyawati College (DU), New Delhi

Kashish Arora has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has verified this Calculator and 200+ more calculators!

< 11 Human Resource Metrics Calculators

Hourly Paycheck

Go Hourly Paycheck = Income till Date+(Regular Working Hours*Wages Paid per Hour)+(Overtime Hours Worked*Wages Paid per Hour from Overtime Hours)-Taxes

Quality of Hire

Go Quality of Hire = (Job Performance Score+Ramp Up Time Score+Engagement Score+Cultural Fit Score)/Number of Indicators

Average Employee Lifetime Value

Go Average Employee Lifetime Value = (Average Yearly Revenue/Number of Employees)*Average Length of Employee Tenure

Human Capital Return on Investment

Go Human Capital Return on Investment = (Revenue-Non Human Capital Expenses)/Human Capital Expenses

Cost Per Hire

Go Cost Per Hire = (External Recruiting Expenses+Internal Human Resource Expenses)/Successful Hires

Employee Churn Rate

Go Employee Churn Rate = (Number of Employees Left/Total Number of Employees Remaining)*100

Employee Turnover Rate

Go Employee Turnover Rate = (Employees Separated/Average Number of Employees)*100

Absenteeism Rate

Go Absenteeism Rate = Total Unplanned Leave/Number of Working Days*100

Average Training Hours

Go Average Training Hours = Total Training Hours/Number of Employees

Overtime Percentage

Go Overtime Percentage = (Overtime Hours/Regular Hours)*100

Employee Satisfaction Index

Go Employee Satisfaction Index = (((Total Score Value of 3 Questions/3)-1)/9)*100

Cost Per Hire Formula

Cost Per Hire = (External Recruiting Expenses+Internal Human Resource Expenses)/Successful Hires
CPH = (ERE+HR_exp)/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 (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 -> 426.9231 = (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+HR_exp)/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 (HR_exp) & 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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