Cost Per Hire (CPH)

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.


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

How to calculate Cost Per Hire

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

Favourable trend

Less is better

Complexity level:

Date created: Mar 01, 2019

Latest update: Apr 17, 2019

Tell me more about this metric

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%.

What do others say?

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

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