Cost per hire calculator
Divide recruiting spend by the number of people hired.
Divide recruiting spend by the number of people hired.
Cost per hire = recruiting spend ÷ number of hires. Use the spend and the hires from the same period.
The result is the average cost of each person who joined in that period. A low figure can mean an efficient channel, or that agency fees were counted and interviewer time was left out. Compare periods only when both use the same list of costs. The page formats pounds. The division is the same in any currency.
£18,000 of ads, agencies, and assessments. 6 people hired. 18,000 ÷ 6.
£3,000.00
£45,000 of spend and 9 hires. 45,000 ÷ 9.
£5,000.00
Job ads, agency and job-board fees, assessments, and travel. Add interviewer time if you want the full cost. Leaving it out makes every hire look cheaper.
Only if you want a cost per seat filled, and only if their recruiting cost is in the spend. For a cost of external hiring, count external hires only.
Either the spend rose or the number of hires fell. One senior agency search in a quiet month can double the average. Split the spend by role if one search is hiding the rest.
Include ads, agencies, and interviewer time if you want a full cost.