Cost Per Hire (CPH)

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Cost per hire calculates the total recruiting cost of an organisation within a particular time frame. Cost per hire is a part of recruitment management system and helps in better talent acquisition within the credited budget on hiring.


CPH = internal recruiting costs + external recruiting costs % total number of hires

Internal recruiting costs include:

  • Talent acquisition teams salary
  • Cost and time spent by hiring managers
  • Learning and training cost

External recruiting costs include:

  • Recruiting agencies cost
  • Career fairs
  • Employer branding activity
  • Posting on job portals

It is seen that CPH cost depends on the hiring size. The more people you hire, the chances is the lower the cost gets. Tracking the cost of your hiring helps in creating right budget for recruitment and stick with those budgets.

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Sukriti Saini

Sukriti Saini works as a content marketing strategist at HROne. She has done Bachelors in Journalism from Delhi University and carries several years of experience in content development. HR trends, Productivity, Performance and topics related to Employee Engagement garner most of her writing interest here. During leisure, she loves to write and talk about fashion, food & life.

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