What is Cost Per Hire?
Cost per hire is a metric that recruiters use to measure the average amount associated with filling a position. This is calculated by adding the total internal and external recruiting costs and dividing this by the total number of hires within a particular period of time. Costs can include salaries, agency fees, advertising costs or even candidate-related costs such as relocation or travel expenses. Reducing this metric is a key KPI and should be measured regularly to assess whether a specific change results in a lower cost per hire rate.