Cost Per Hire is a metric used to determine the total expense incurred by a company to fill a vacant position. It includes all hiring-related costs, such as recruitment advertising, agency fees, employee referral bonuses, travel expenses for candidates, interview time, and onboarding costs. Cost Per Hire is calculated by adding up these expenses and dividing by the number of new hires within a specific period. This metric helps companies evaluate the efficiency of their recruitment processes, identify cost-saving opportunities, and establish budgets for future hiring needs. Lowering Cost Per Hire while maintaining hiring quality can be a key objective for HR departments.
