HOW TO CALCULATE YOUR
COST-PER-HIRE The average U.S. employer spends about
$4,000
and 52 days
to hire a new worker.1
Do you know what your cost-per-hire is? CONSIDER THE FOLLOWING WHEN CALCULATING:
External Recruiting Costs Job Sourcing
Pre-hire Assessments
Background Checks, Work Eligibility and Drug Testing
Recruitment Process Outsourcing
Recruitment Technology
Job Boards
Contractors
Marketing
Internal Recruiting Costs In-house Recruiting Staff
Full-Time Internal Recruiters
Systems (e.g., ATS)
Referral Rewards
Hiring Metrics
Time Frame to Fill Headcount
Attrition Rate
Ready to calculate?
CPH =
Candidate Quality
HERE’S THE FORMULA:
Σ (External Costs) + Σ (Internal Costs) Total Number of Hires in a Time Period Divide how much you spent on recruiting (the sum of your external and internal recruiting costs) by the number of hires you made in a given period of time, and you have your cost-per-hire. For more best practices on talent analytics, visit www.glassdoor.com/employers/resources to download Talent Analytics For Dummies® Source: 1Bersin by Deloitte Talent Acquisition Factbook, 2015 © 2016 Glassdoor