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Cost Per Hire

Calculate your average cost per hire using the SHRM standard formula and benchmark your result against the US industry average of $4,700.

Recruiter salary allocation, HR staff time, onboarding, training materials
Job boards, agency fees, background checks, assessment tools
Total hires made during the measurement period

Results

Cost Per Hire$1,600.00
Total Hiring Cost$8,000.00
vs. Industry Avg ($4,700)$-3,100.00

📖What is it?

Cost Per Hire (CPH) is a SHRM-standard metric that captures all recruiting expenditure divided by the number of new hires. It includes both internal costs (recruiter time, HR salaries, onboarding) and external costs (job boards, agency fees, assessments, background checks). The SHRM/ANSI benchmark for average CPH across all industries is approximately $4,700, though technical and executive roles can run $20,000 to $50,000+.

🎯How to use

Tally all internal and external recruiting costs for a period (month, quarter, or year), enter the total spend in each category, and enter the number of hires made in that period. A negative vs. industry figure means your CPH is below the benchmark — favourable. A positive figure indicates you are spending more per hire than average.

💡Example scenario

A startup spent $5,000 on internal costs (recruiter time) and $3,000 on job boards and background checks to make 5 hires. CPH = $8,000 / 5 = $1,600 — well below the $4,700 industry average. As the company scales and begins hiring for specialised roles, this figure will rise and should be tracked quarterly.

🏆Pro tip

CPH alone does not indicate hiring quality. Pair it with Quality of Hire (performance ratings at 90 days) and Time to Fill. A very low CPH with high turnover at 6 months often means cutting corners on assessment — costing far more in the long run. SHRM recommends tracking CPH by role level: hourly, professional, and executive.