The Cost per Hire (CPH) Calculator helps HR professionals and businesses estimate the average cost of hiring new employees. It factors in expenses like recruitment and training, providing an accurate understanding of the costs involved in bringing new talent into the company.
How to Calculate the Cost per Hire
Follow these steps to calculate the cost per hire:
- Enter the total recruitment costs in USD. This may include job postings, recruitment agency fees, and interview costs.
- Input the total training costs, such as onboarding programs, orientation, and any other employee training expenses.
- Enter the number of hires you have made or plan to make.
- Click the 'Calculate Cost per Hire' button to view the average cost per hire.
Cost per Hire Formula
The formula used for calculating the cost per hire is:
- Cost per Hire (CPH): CPH = (Recruitment Costs + Training Costs) / Number of Hires
Example Calculation
For example, if your recruitment costs are $15,000 and training costs are $5,000 for 10 hires, the cost per hire would be:
CPH = ($15,000 + $5,000) / 10 = $2,000
This helps companies optimize hiring strategies and plan their recruitment budgets more efficiently.