Analytics · HR glossary

Cost per Hire

Cost per hire is the average recruitment cost for each hire in a defined period. A common formula adds internal and external recruiting costs and divides by the number of hires.

Example

If recruitment costs total ₹300,000 and six people are hired, cost per hire is ₹50,000 using that stated cost scope.

What to keep in mind

Define included costs and count hires consistently. Advertising, agency fees and recruiter time may belong in the calculation, but comparisons are misleading when employers include different cost categories.

Put it into practice

Cost per hire calculator

Further reading

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