Cost Per Hire Calculator

Formula

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.