← HR Metrics·Talent Acquisition
Cost per Hire
Total recruitment cost divided by number of hires
How it’s computed
total_recruiting_cost / hires
What the evidence shows
Evidence (effect sizes, priors, validity) is syncing from Principia.
What this metric can show you
Cost per Hire can tell roughly 26 pre-built stories — each a designed scene the data either confirms or it doesn’t. Bring your numbers and the Story Finder runs every one of these shapes against them.
specific to talent acquisition
New hires are ramping slower than they used to
onboarding · T1
No villain stage — the funnel is the funnel
ta-funnel · T1
On this pace, you miss the plan
ta-funnel · T1
The hiring engine is stalling
ta-funnel · T1
The leak has an address
ta-funnel · T1
There's one job family we can't close
offer-competitiveness · T1
You're losing them at the close
ta-funnel · T1
Your biggest source isn't your best
quality-of-hire · T1
universal shapes — any single metric can take these
A few large values are doing the talking
any focus · T1
A one-time event, not a trend
any focus · T1
It doesn't track — the premise is false
any focus · T1
It's concentrated — one group stands apart
any focus · T1
Scenes are pre-built; your data is the toggle. Browse the full deck or watch one play end-to-end in The Quiet Exodus.
Run it on your data
This metric is computed in the People Analytics Toolbox on your own numbers. See pricing — posted, no quotes.
sources: toolbox:metrics-catalog · principia:metrics
What the literature says
The measurement literature behind this signal — sourced, so you can defend it.
“The first and most traditional measure of recruiting cost is cost-per-hire, as I explain next. Cost-per-hireCost-per-hire measures the economic cost of the effort taken to fill an open job. Given that filling an open job is in no way, shape, or form a uniform task, you can…”
— People Analytics For Dummiesmatch 73%
“Even if you end up deciding that the candidate is not a good fit for your firm, you have built another connection in your field that may be valuable in the future. Also important - Ensure that the process of “always be looking” doesn’t just rest with you, but with those who…”
— Lean Recruitment Finding Better Talent Fastermatch 66%
“Labour Cost Expense Percent Labour Cost / Operating Cost The total labour costs as a percentage of total expenses. Labour cost can be a significant operating expense, in an organization that relies on human capital to generate value. Review this with Revenue per FTE to ensure…”
— Predictive HR Analyticsmatch 62%
Resources: People Analytics For Dummies · Lean Recruitment Finding Better Talent Faster · Predictive HR Analytics