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How much does it really cost to hire a new employee? Cost per hire is one of the most used HR metrics and recruiting KPIs. Understanding cost per hire enables you to make more strategic decisions when investing in your recruitment efforts. In other words, it helps in decision-making around the costs involved in the hiring process and also provides an estimation of the cost of hard-to-fill roles. There are many costs associated with hiring a new employee to fill a role, with some of the obvious and some of them not so straightforward. For example, how do you quantify the marketing material needed to advertise a vacancy? Or how do you calculate the cost of the interview process? This makes the cost per hire arguably one of the most important, but also the trickiest metrics in recruiting and talent acquisition. Let’s have a look at the cost per hire definition, formula, and how to calculate it. ContentsWhat is cost per hire?Cost per hire formulaHow do you calculate cost per hire?Why is cost per hire an important metric to track? What is cost per hire? Cost per hire is a recruiting metric that measures the costs associated with the process of hiring
