Download Cost per Hire Template Calculator excel file.
Recruitment and retention can be costly; it’s therefore important to examine how companies minimise those costs. The Cost Per Hire is essentially a mathematical model for the cost of finding and hiring new employees. It contrasts hiring methods and their related costs to figure out which is the most cost-effective method of hiring. It involves the price of advertising (in time and money), the cost of travel, and other expenses that go into hiring a new employee.
How to calculate Cost per Hire?
- Start by calculating your month-over-month spending on advertising and recruiting.
- Figure out how many employees it takes to review and interview candidates and how much you’re paying for them.
- Estimate the training expenses for each new employee.
- Divide each with the number of successful applicants, interviews and hires.
- Make sure to account for any miscellaneous costs.
Sounds complicated? It’s easier to download and use the calculator we have prepared for you.