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Calculate cost per hire the way the SHRM and ANSI standard defines it, with internal and external recruiting costs separated. Every number on this page is calculated in your browser and never leaves your device.
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Formula used
Cost per hire = (total external costs + total internal costs) / total hires
External costs = agency fees + advertising + screening + travel and relocation + other external
Internal costs = recruiting staff compensation + referral bonuses + recruiting software + other internal
The denominator is hires who started, not offers extended. Counting internal costs is what makes the figure comparable to anyone else's, and it is the part most calculations leave out.
Recruiter time is usually the largest single input and the one most often excluded. A cost per hire built only from agency invoices and job board spend is not comparable to anyone else's number.
The denominator is hires who started, not offers extended. Using offers understates the cost of a role with a low acceptance rate, which is precisely the role you need the number for.
An executive search and a high volume hourly requisition belong in separate calculations. A blended figure across both describes no actual hiring situation.
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