Multiplier Logo
Loading Animation Image

Global Work Glossary

Lost in a maze of global employment jargon? Find your way out with our handy collection of work and HR terminology

Search Icon
# A B C D E F G H I J L M N O P R S T U V W X Y Z

Cost per hire

What is cost per hire metric?

Cost per hire is a metric used to calculate the total expenses incurred by an organization for recruiting and hiring a new employee. This will typically include external costs such as advertising and paying recruiters and internal costs such as interviewing and onboarding costs. For example, if you hire 50 people in a year and spend $100,000 for adverts on job boards, training programs, and paying staff for their time to interview, your cost per hire would be £2,000.

Tracking cost per hire allows you to assess the efficiency and effectiveness of your recruitment process and allocate the budget in the right places. You can compare your cost to hire to industry benchmarks and then analyze which areas of your recruitment process are slowing you down or adding extra costs. You might find, for example, that an external recruitment agency costs less than when you hire internally and this would then justify additional budget allocation.

It’s important to also take into account return on investment. Even if your total cost per hire on a particular employee is high, this will not matter if they end up providing a lot of value to the company in the long term.

This is why it’s important to choose a professional employer organization such as Multiplier that is accredited by the ESAC or certified by the IRS and up to date with global compliance. With the right relationship, you can grow together in the long term.

Ready to take the leap? Choose Multiplier as your EOR partner

Gain fresh perspectives

Take a look at our new blogs and e-books

a-guide-to-mastering-payroll-reports

Choosing the Right HR Document Management Software for Your Business

Read more

Mp More Link Arrow Right
How-to-Master-Payroll-Reports-A-Guide-to-Streamlining-Financial-Insights-and-Compliance

How to Master Payroll Reports: A Guide to Streamlining Financial Insights and Compliance

Read more

Mp More Link Arrow Right
how-to-hire-the-best-talent-from-canada

From Rockies to Office: How to Hire the Best Talent from Canada

Read more

Mp More Link Arrow Right
Footer 24x5 New Img2x

An all-in-one international employment platform