Cost per Hire is the average cost for each person hired by the organization.
Cost per Hire = (Internal Hiring Costs + External Hiring Costs) / Number of Hires
A recent group of 7 hires cost $5,000 internally and $2,500 externally.
Cost per Hire = ($5,000 + $2,500) / 7 = $7,500 / 7 = $1,071.43 per hire
- Jibe – Calculating and using cost per hire the right way – An overview of how to calculate the cost per hire and where it is used.
- Ideal – How to calculate cost per hire to optimize recruiting – A summary of the expenses involved with a new hire.
- Workable – Recruiting costs FAQ: Budget and cost per hire – Recruiting benchmarks and a breakdown of cost-per-hire expenses.