Cost Per Hire

Cost Per Hire (CPH) is a key metric used by organizations to calculate the total cost of recruiting and hiring a new employee. CPH is calculated by dividing the total recruiting costs by the number of new hires in a given period.

Recruiting costs may include a variety of expenses, such as job board postings, advertising, recruiting events, employee referral bonuses, and recruiting software and services. CPH may also include indirect costs such as the time spent by recruiters and hiring managers reviewing resumes, conducting interviews, and negotiating job offers.

CPH is an important metric for organizations to track because it can help them identify areas where they can reduce costs and improve their recruitment processes. By analyzing CPH data, organizations can identify which recruiting sources and strategies are most effective and allocate their resources accordingly. They can also track changes in CPH over time to assess the effectiveness of their recruitment efforts and identify trends in recruiting costs.

To calculate CPH, organizations can divide the total recruiting costs by the number of new hires in a given period. For example, if an organization spends $50,000 on recruiting and hires 10 new employees, the CPH would be $5,000 per hire. It is important to note that CPH may vary depending on the role, location, and level of experience of the new hire, as well as the recruiting sources and strategies used.