Cost per Hire
More about Cost per Hire
How often to calculate: monthly or annually.
Healthy rate: depends on the corporate management.
Cost per hire is a metric that shows a company's costs to hire one employee. Tracking this KPI helps HR managers create budgets and stick to them. Considering the average cost of hiring, you can allocate the budget efficiently.
To track the cost of hiring, you need to assess the internal and external costs of hiring staff and the total number of employees hired over a certain period.
Internal recruiting costs are the internal costs of filling a specific position: in-house talent acquisition staff salaries, recruiter salaries, talent acquisition program costs (such as an employee referral program), etc.
External recruiting costs are any costs to external vendors during the recruitment process: external recruiting agency fees, job postings on job boards, candidate background checks, employer branding events (such as job fairs), employee relocation costs, etc.