Enter the total internal recruiting costs, total external recruiting costs, and the total number of new hires to calculate the cost per hire.

## 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?

1. First, determine the total internal costs.

Calculate the total internal hiring costs over a time period.

2. Next, determine the total external costs.

Calculate the total external recruiting costs over the same time period.

3. Next, determine the number of new hires.

Measure the total number of people hired during the time period.

4. Finally, calculate the cost per hire.

Calculate the cost per hire using the equation above.

## FAQ

What is a cost per hire?

A cost per hire is the total monetary expense required to hire 1 person.