Recruitment Cost per Hire Calculator
Calculate the comprehensive cost of hiring a new employee including direct costs and interviewer time. Compare against industry benchmarks.
What is a good cost per hire benchmark?
According to SHRM, average cost per hire is approximately $4,700. However, it varies significantly by role: entry-level: $1,500-3,000, professional: $3,000-7,000, executive: $15,000-50,000+, technical/STEM: $10,000-25,000+. Include all costs to get accurate numbers.
What costs should be included in cost per hire?
Include both hard and soft costs: Job postings and advertising, Recruiter fees (internal time + external agency), Applicant tracking system costs, Interviewer time (salary × hours), Background checks and assessments, Relocation expenses, Sign-on bonuses, Equipment and onboarding materials, Training costs in first 90 days.
How can I reduce recruitment costs?
Strategies: improve employer brand to attract more organic applications, implement employee referral programs (50% cheaper), use skills assessments to screen faster, optimize job descriptions, improve interview efficiency, build talent pipelines, use AI for resume screening, and negotiate recruiter fees.
What is time to hire and why does it matter?
Time to hire = days from job posting to offer acceptance. Industry average: 30-45 days. Longer time to hire increases costs (open role = lost productivity). Target: under 30 days for standard roles, under 45 days for specialized roles. Track this metric alongside cost per hire.
How do I calculate ROI on recruitment investment?
Recruitment ROI = (Revenue generated by new hires - Total recruitment cost) / Total recruitment cost × 100. Consider: revenue per employee, quality of hire (performance ratings), retention rate of new hires, and time to productivity. High-quality hires have 2-3x higher ROI.