Enter the total internal recruiting costs, total external recruiting costs, and the total number of new hires to calculate the cost per hire.
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Cost Per Hire Formula
The following formula is used to calculate a cost per hire.
CPH = (TIR + TER) / #H
- Where CPH is the cost per hire
- TIR is the total internal recruiting costs
- TER is the total external recruiting costs
- H is the total number of new hires
Cost Per Hire Definition
A cost per hire is defined as the total expense it takes to hire one individual for a company.
Cost Per Hire Example
How to calculate cost per hire?
- First, determine the total internal costs.
Calculate the total internal hiring costs over a time period.
- Next, determine the total external costs.
Calculate the total external recruiting costs over the same time period.
- Next, determine the number of new hires.
Measure the total number of people hired during the time period.
- Finally, calculate the cost per hire.
Calculate the cost per hire using the equation above.
A cost per hire is the total monetary expense required to hire 1 person.