Use this Online Cost Per Hire Calculator to get desire metric free template in Excel.
Cost Per Hire Calculator helps to calculate the costs associate with advertising, recruiting and staffing, etc. borne by a company to fill an open position.
In other words, Cost Per Hire or CPH means expenses incur by an employer for recruiting new staff from advertising to joining an employee against total number of recruitments.
Moreover, CPH or Cost Per Hire is one widely used HR metrics to measure effectiveness of the recruiting process.
Thus, it is advisable to have low CPH while recruiting. We should keep in mind that maintaining the quality of recruits is also necessary.
Cost Per Hire = Direct Expenses + Indirect Expenses / No of Candidates Recruited.
Direct Expenses = Salaries of recruiting staff, expenses incurred by recruiting staff, candidate background checks, reference checks, etc.
Indirect Expenses = Recruiter Fees, Advertising costs, Career Fair Expenses, Job board postings, etc.
Thus, CPH varies according to size of the organization, recruitment channels, the seniority of position, etc.
Moreover, to simplify and ease CPH calculations, we have created a Cost per Hire calculator excel template. Just add your details and it will automatically calculate Cost per Hire for you.
Contents of Cost Per Hire Calculator Template
This template consist of 7 sections
- Summary Section
- Advertising Costs Sections
- Reviewing Costs Section
- Interviewing Costs
- Joining Costs Section
- Miscellaneous Costs Section
1. Header Section
Firstly, the header section consists of the company name, company logo, and heading of sheet “Cost Per Hire Calculator”.
2. Summary Section
Secondly, the summary section consists of calculations of cost per candidate for expense.
Cost Per Hire = Advertising cost per candidate + Reviewing Cost + Interviewing Cost + Joining Costs + Miscellaneous Costs.
3. Advertising Costs
Moreover, Advertising costs include advertising in newspapers, through job portals, and other social media. After adding all advertising costs it is divided by the number of candidates recruited to get Advt. Cost Per Candidate.
4. Reviewing Process Cost
However, CV reviewing cost includes cost of scrutinizing and finalizing the candidates’ applications.
So, Reviewing Cost Per Candidate = No. of HR staff employed X No. of days X Cost per Day / No. of Candidates Recruited.
5. Interviewing Process Cost
Thus, All cost related to interviewing candidate is Interviewing costs.
So, Interviewing Cost per Candidate = No. of interviewers X No. of days X Cost Per Day / No. of Candidates Recruited.
6. Joining Costs
Moreover, The joining cost includes all expenses on candidate to join the organization. It includes the medical examination, training of candidates, and other expenses.
Thus, Joining Cost Per Candidate = Medical Examination Expenses + Training Expenses + Other Expenses / No .of Candidates Recruited
7. Miscellaneous Cost
Somehow, Miscellaneous costs include cost incurred to conduct the background checks on the candidates and confirming the references provided by the candidates.
So, Misc. Cost per Candidate = Total Costs / NO of Candidates Recruited
Furthermore, while calculating the CPH, it should be kept in mind that CPH should be specific to a period like annual, six months, or quarterly.