According to a recent survey conducted by the Society for Human Resource Management (SHRM), the average cost per hire is just over $4,000.
Of course, various factors can skew that number, such as your hiring volume. The more people you hire, the lower your cost per hire will be. You can spread your fixed hiring costs over a larger number of people.
Also, upper-level or niche positions can take more time to fill, so the accrued costs of that extended process may result in a higher cost per hire.
Depending on your company size and the positions you’re looking to fill, a good cost-per-hire range is somewhere between $3,000 and $5,000.
Here’s how to calculate the standard cost-per-hire:
Cost Per Hire= (Internal Recruiting Costs+External Recruiting Costs)Number of Hires
In other words, if you take the sum of your internal and external recruiting costs and divide that number by the number of hires you make in a year (for example), you’ll get your annual cost per hire.
Of course, you can also look at the numbers over the course of several years to determine your average and see whether that number is going up or down.