The formula to calculate the Cost Per Hire (CPH) is:
\[
CPH = \frac{TIR + TER}{H}
\]
Where:
\( CPH \) is the cost per hire
\( TIR \) is the total internal recruiting costs
\( TER \) is the total external recruiting costs
\( H \) is the total number of new hires
Definitions
Cost Per Hire (CPH): The total expense of hiring one individual for a company.
Total Internal Recruiting Costs (TIR): The costs associated with internal recruiting efforts.
Total External Recruiting Costs (TER): The costs associated with external recruiting efforts.
Total Number of New Hires (H): The total number of new employees hired.
Example
Let's say the total internal recruiting costs are $50,000, the total external recruiting costs are $30,000, and the total number of new hires is 10. Using the formula:
\[
CPH = \frac{50000 + 30000}{10}
\]
We get:
\[
CPH = 8000
\]
So, the cost per hire is $8,000.
Extended information about "Cost-Per-Hire-Calculator"
How to Calculate Cost of Hire
Formula: Cost of Hire = \( \frac{\text{Total Recruitment Costs}}{\text{Number of Hires}} \)
Total Recruitment Costs: The sum of all costs associated with hiring, including advertising, recruiter fees, and onboarding expenses
Number of Hires: The total number of new employees hired
Example: Cost of Hire = \( \frac{50000}{10} \)
Formula to Calculate Cost per Hire
Formula: Cost per Hire = \( \frac{\text{Internal Recruiting Costs} + \text{External Recruiting Costs}}{\text{Total Number of Hires}} \)
Internal Recruiting Costs: Costs incurred within the organization, such as salaries of HR staff
External Recruiting Costs: Costs paid to external agencies, job boards, etc.
Total Number of Hires: The total number of new employees hired
Example: Cost per Hire = \( \frac{30000 + 20000}{15} \)
