← 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.
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