Understanding Cost Per Hire
How we calculate. CPH = recruiting spend ÷ number of hires. The form uses the same arithmetic as the worked examples on this page. See our methodology and accuracy policy.
Real-world scenario: A typical Cost Per Hire case uses total recruiting cost 45000 and number of hires 15. Enter the same figures below to reproduce the worked path.
What is Cost Per Hire?
SHRM-style recruiting efficiency metric. Include internal and external costs consistently across periods.
- Include agency, ads, tools, travel as policy defines
- Count accepted starts or filled reqs—be consistent
- Segment by role level for fair benchmarks
The Formula
Worked Example
Common Use Cases
- Budget planning: next quarter hiring
- Channel ROI: agency vs inbound
- Role tiers: exec vs volume hiring
Pro Tips
- Amortize shared ATS costs carefully
- Exclude relocation if tracked separately
- Compare same job family
Limitations: Cost Per Hire results are educational HR planning aids—not legal, payroll, or employment advice. Confirm definitions with your HR/finance policies.
FAQ
Internal vs external cost?
Many reports sum both. Document whether recruiter salaries are included.
What if hires = 0?
Cost per hire is undefined until at least one hire is recorded.
Authoritative References
For people-analytics definitions, consult: