Recruitment
What is Cost per Hire?
Cost per hire is the average amount an organisation spends to fill one position.
It can include advertising, agency fees, recruitment tools, recruiter time, assessment costs and onboarding-related expenses. Teams should use a consistent calculation period and cost definition.
Key aspects of Cost per Hire
Key areas to understand include:
- Candidate sourcing and application flow
- Assessment, screening and communication
- Hiring records and decision stages
Example of Cost per Hire
A company divides its quarterly recruitment spend by the number of employees hired that quarter.
Why Is Cost per Hire Important?
Understanding recruitment terms helps teams run a clearer, more consistent candidate process.
Improves candidate experience
Clear processes and communication help candidates understand each stage.
Supports better hiring decisions
Shared definitions help teams align on role requirements and candidate progress.
Frequently asked questions
What is included in cost per hire?
It may include internal recruiting costs and external hiring expenses.
Why measure cost per hire?
It helps teams compare hiring channels and manage recruitment budgets.