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Free Recruiting Cost-Per-Hire Calculator

Thursday, December 5, 2019
The first step to better recruiting is to understand what it is costing you. And recruiting a new team member costs far more than you might think. Both internal and external activities affect your cost-per-hire. This ratio, the total dollars spent for sourcing, recruiting and staffing for the total number of hires during a specific time period, is an essential metric.
 
To arrive at your true cost-per-hire you need to consider all of the following.
 
Internal Considerations
- Salary, benefits, bonuses and career development of your internal recruiting team
- Software and hardware costs: applicant tracking system, interviewing software, reference check platform, etc.
- Other fixed costs such as employee referrals, government compliance, etc.

External Considerations
- Third-party fees such as contract recruiters and staffing agencies
- Job marketing costs such as job postings, job boards, pay for performance job advertising, and social media
- Career fairs and college campus recruiting
- Travel expenses for recruiting
- External assessments such as background checks and drug tests

Once you have this info, add up all of your internal and external recruiting costs, and then divide by the total number of hires:
 
Cost per Hire ($) = (Total External Costs + Total Internal Costs) / Total Number of Hires
 
Figuring out your cost-per-hire by hand can be cumbersome, however. With this in mind, Accolo, a division of Orion Novotus, has developed a simple resource to help you calculate your cost-per-hire and better understand your recruiting budget needs. Our cost-per-hire spreadsheet shows all of the inputs you need to quickly calculate your cost per hire, and you can download it now.
 

What should your cost-per-hire look like? According to SHRM, an industry benchmark would be $4129. But, whatever your final number turns out to be, calculating it is a strategic exercise that will help to improve the cost-effectiveness of your recruiting process. We hope that you find our free Cost-Per-Hire Calculator spreadsheet to be an effective recruitment planning tool.
 
 

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