What Is Cost Per Hire?

Cost per hire is the total amount of money spent by an employer on finding a new hire. When calculating cost per hire it's important to take into account both external and internal costs to get a true value.  

How to Calculate Cost Per Hire?

The average UK employer spends about x pounds and x amount of days when recruiting for a new employee.

Each company has a different recruitment process however the considerations are broadly the same. Here are the external and internal costs to be considered when calculating cost per hire. 


  • Advertising channels such as job boards and social media. 
  • Recruitment Agencies
  • Job Fairs
  • Contractors (e.g. to build a career page)
  • Drug testing 
  • Background checks on candidates such as DBS checks. 


  • Recruitment software such as an Applicant Tracking System 
  • The salaries of the recruitment team.
  • Company infantry such as computers and phones.
  • Cost of referral schemes  

Other Considerations:  

  • How long the process drags on for could make a lot of difference between a ready and willing hire and a large hole in your finances. 
  • The employee churn aka How frequently you have to replace employees. 
  • The quality of the candidate in question. You may not want to stop the hunt until you find a candidate that practically embodies your profile. 

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