Cost of Hire
Whether you have an unlimited budget or an extremely limited budget you will want to measure cost per hire. It is an important return on investment (ROI) indicator for your sourcing channels and can be compared with other metrics such as quality of hire and employee life time value to deepen your ROI understanding.
How do you calculate Cost of Hire?
Before calculating your Cost of Hire, it also needs to be broken down by internal and external hires. External hires are almost always more expensive. Some of the costs to consider include:
Internal Costs:
- Internal recruitment staff costs
- System costs (e.g. ATS, Talent CRM, Video Interviewing etc.)
- Referral bounties
External Costs:
- Agency / RPO fees
- Assessment testing
- Background checks, right to work checks etc.
- Job Board advertising
- Expenses
- External marketing costs
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Having full insight into all aspects of your recruitment process is vital in the quest for hiring perfection. Download the full Recruitment Metrics Cookbook today and get access to an extensive list of metrics and how to calculate them.
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