Work out what each hire costs, staff time included
The invoice from a job board or an agency is the visible part of hiring. The hours your recruiters and interviewers spend have a cost too, and leaving them out makes each hire look cheaper than it was. Enter what you paid, the hours spent with what an hour of that time costs, and the number of people hired. You get the cost per hire and the share of each part.
Paid to others
Job boards, sponsored posts, social ads.
Hiring software, skills tests, video interviews.
Referral bonuses, background checks, travel, relocation.
Your staff’s time
The result
In the same period as the costs.
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Enter what the hiring cost and how many people were hired.
How cost per hire is calculated
cost per hire = total cost ÷ people hiredtotal cost = advertising + agency fees + tools + other costs + recruiter hours × hourly cost + interviewer hours × hourly costshare of a part = that part ÷ total cost × 100
Use one period for everything, for example a quarter or a year: the costs of that period and the people hired in it. For the hourly cost of staff time, take salary plus employer-side costs and divide by the hours worked in a year; the salary converter on this site does that division. Hours entered without an hourly cost are not counted, and the page says so. The calculator holds no benchmark: what a hire costs depends on the role, the country and how you hire, so compare the result with your own earlier periods.
Questions about the cost per hire calculator
How is cost per hire calculated?
Add up everything spent on hiring in a period, both money paid to others and the time of your own staff, and divide by the number of people hired in that period. $36,600 spent to hire six people is $6,100 per hire.
Which costs belong in cost per hire?
Money paid to others: job advertising, agency fees, software, background checks, referral bonuses, travel and relocation. And the time of your own people: recruiters, hiring managers and everyone who interviews, each at what an hour of their time costs the company.
How do I put a price on interviewers’ time?
Take the yearly cost of the person, salary plus employer-side costs, and divide by the hours worked in a year (2,080 at 40 hours a week). Multiply by the hours spent on screening calls, interviews and debriefs.
What is a good cost per hire?
There is no single figure, and this page does not quote one: it depends on the role, the seniority, the country and whether you use agencies. Compare with your own previous quarters, and look at the parts: the breakdown shows where the money goes.
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