Cost Per Hire (CPH)

Date created: Oct 12, 2022  •   Last updated: Oct 12, 2022

What is Cost Per Hire

Cost Per Hire is a fundamental recruiting metric, that helps Human Resource professionals budget, calculate a return on their effort, and understand how effective their employee brand is when recruiting talent. Cost Per Hire is defined as the internal and external costs required to hire a new employee.

Cost Per Hire Formula

ƒ Sum(Internal Recruiting Costs + External Recruiting Costs) / Count(Hires)

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What is a good Cost Per Hire benchmark?

Between $3,000 and $5,000 depending on the size of company and industry.

How to visualize Cost Per Hire?

Use a summary chart to visualize your Cost Per Hire data and compare it to a previous time period.

Cost Per Hire visualization example

Cost Per Hire


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vs previous period

Summary Chart

Here's an example of how to visualize your current Cost Per Hire data in comparison to a previous time period or date range.
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Cost Per Hire


Measuring Cost Per Hire

More about Cost Per Hire

An important metric in Human Resources is figuring out what the average amount of money the business spends on making a new hire. This number is especially helpful for creating and tracking a recruiting budget, and determining whether or not it's being spent wisely.

An equally interesting metric to evaluate is the Recruiting Cost Rate (RCR), which contemplates the recruiting costs alongside their annual salary. For example, if you spent $10K to recruite a new resource earning $100K per year, then your RCR would be 10%.

Recommended resources related to Cost Per Hire

Here is a great article, demystifying the Cost Per Hire Metric, by Nikoletta Bika

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