Cost per hire refers to the measurement of the total cost that a company spent on hiring employers. Easily measurement it by this free cost per hire calculator.
What is Cost Per Hire in Recruitment:
Cost per hire in recruitment means how much charge has been spent by a company for hiring employers. We can calculate it by total internal cost plus total external cost divided by total numbers of hires.
What is Recruitment Budget?
Recruitment budget means to total cost where a company spent for Appointment. It includes internal and also external costs. To better understand, follow the list of these 2 sectors.
Internal Cost Sectors:
Internal cost means to that has spent on internally at company.
- Employers salaries
- Candidate assessment costs
- Interview costs
External Cost Sectors:
External cost means to company spent that money outside of their company.
- Recruiting events
- Advertising cost it could be social media advertising, TV advertising, newspaper advertising, and any others.
- Recruiter fees
How to Calculate Cost Per Hire in Recruitment:
How we calculate the cost per hire on our calculator? It’s a straightforward process! Just follow the below formula.
CPH Calculation Formula:
Cost per hire (CPH)=(Internal cost + External cost) / Number of Hires
CPH Calculation Example:
Suppose a company spent $3000 internally and $1000 externally for 5 employees hire. Now see the example of how to calculate it.
Cost Per Hire Calculator Excel:
It’s really super easy to calculate CPH on excel also. Just take 2 columns and 4 ROWS. Then input in serially like the below table:
|Internal costs:||Your company internal cost for hire|
|External costs:||Your company external cost for hire|
|Number of Hires:||Total hired employers|
Now take another row and type CPH on first column and then type this formula on second column:
Note: Replace the text with your cell number
=(Internal cost + External cost) / Number of Hires
Unfortunately if you cant’t understand then look at the below screenshot.