Cost Per Hire
The total internal and external recruiting cost of a period divided by the number of hires made in that period.
Cost per hire follows the ANSI/SHRM structure: external costs such as job boards, agency fees and background checks, plus internal costs such as recruiter time, interviewer time, tools and referral bonuses, divided by the number of hires in the same period. Many companies undercount it by leaving out the time of the people who interview and decide.
It measures the cost of recruiting and not the quality of the people hired. A related measure, cost per retained hire, divides by the share of hires who stay for a year, and the recruiting cost ratio expresses cost per hire as a share of first-year salary.
Calculate your own cost per hire instantly, free.
Open the calculator →