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
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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
Summary Chart
Cost Per Hire
Chart
Measuring Cost Per HireMore 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 BikaMetric Toolkit
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