What is cost per hire (CPH)?
Cost per hire (CPH) is the total cost a company incurs to hire a new employee. This includes advertising, recruitment costs, HR staff time and other related expenses.
1. Collect all recruitment costs:
This includes costs such as advertisements, career sites, salary of HR personnel, and any expenses to recruitment agencies.
2. Determine the number of new employees:
See how many new employees you hired during the period you are researching, such as within a quarter or year.
3. Calculate the cost per hire:
Divide the total recruiting cost by the number of new employees. This gives the average cost per hire (cost per hire), or what it costs you to hire one new employee.
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