When you hire someone new, you have to pay for job ads, recruiter hours, software, interviews, and onboarding time. This calculator will show you the true cost of each new hire to your business.
What is the cost of hiring?
The total cost of filling one open position, including both internal and external recruiting costs, divided by the number of hires in a given time period.
How do I figure it out?
Add up the costs of hiring people from inside the company (like recruiters' salaries, time spent by the hiring team, the ATS, and onboarding) and from outside the company (like job ads, agency fees, and background checks). Then split that total by the number of people you hired.
How much should you pay to hire someone?
For small and medium-sized businesses, paying between $3,000 and $5,000 for each hire is a good amount. If you keep going over $8,000, you should look over your tools and process.
How can I make my hiring costs lower?
To cut down on manual work, use automation and an ATS. Make your job descriptions better to get better matches. Keep track of which job boards bring in the best candidates. Use referrals and internal mobility more.
Does the number change based on the role?
Yes. It usually costs more to fill technical and senior roles because it takes longer to find candidates and costs more to advertise. Entry-level and seasonal positions are less expensive.
How often do I need to check it?
Every three or six months is best—enough to see trends without having to manage every hire.