Cost-per-Hire definition
The total cost of bringing on board a new staff member, including recruitment, purchase of equipment, onboarding, administrative costs and benefits. The cost-per-hire varies widely depending on the size of the company, the number of recruitment channels they use, the seniority of the position being filled and the strength and efficiency of in-house
Reducing the cost-per-hire is an on-going process for HR departments and involves a range of options, including switching to a cheaper recruitment agency, incentivising existing employees to find suitable candidates and making use of the company’s existing channels such as websites and social media. HR software can also help reduce costs by allowing companies to organise candidate data, sift through applicants and manage the whole recruitment process cost-effectively.
