Cost-Per-Hire (CPH)
Cost per hire (CPH) is what it costs you, on average, to recruit and land a new employee. It’s the total of recruiter salaries, agency fees, background-check services, and job postings, then divided by the number of people hired in each period.
| Metric | Referral-Based Hiring | Traditional Hiring | Impact |
|---|---|---|---|
| Average Cost Per Hire | ~$2,400 | ~$4,700 | 49% Cost Savings |
| Time-to-Hire | 29 Days | 42 Days | 31% Faster |
| 2-Year Retention Rate | 85% | 60% | 25% Higher Retention |
| Quality of Hire Score | 8.5/10 | 7.0/10 | Improved Performance |
Here’s where most companies get it wrong: they treat this metric like an accounting exercise. It’s not. CPH reveals whether your talent acquisition is running like a machine or bleeding cash quietly in the background.
FAQ
What should you include in Cost-Per-Hire (CPH)?
All costs from the moment you post a job through the day someone signs an offer letter. This includes recruiter salaries, job boards, agency fees, background checks, relocation. Skip onboarding costs like equipment, training, and ramp time. If you want the full picture, add CPH plus onboarding to see the real total investment per hire.
How is cost-per-hire (CPH) different from quality of hire?
Cost-Per-Hire measures speed and expense. Quality of hire measures performance and retention. You can drive CPH down to zero if you’re willing to hire people who quit in three months. That’s not progress. Track both or you’ll outsmart yourself into a disaster.
Is onboarding part of cost-per-hire (CPH)?
No. Onboarding is its own line for setup costs, training, and the productivity dip during ramp-up. CPH stops when the person walks through the door on day one. However, total cost of hire (CPH + Onboarding) provides a more holistic view of the investment required for a new employee. SplashBI is now SOC1, SOC2 Type 2 and ISO/IEC 27001 Compliant! - Facebook - twitter - Linkedin Solutions - HR - Finance - Sales - Supply Chain Platform - Platform Overview - Data Pipeline - Connectors - Embedded Analytics - Integrations & API Products - People Analytics - Financial Analytics - CRM Analytics - SplashAI - Reporting - GL Connect - SQL Connect Resources - Webinars - Events - Datasheets - Whitepapers - eBooks - Case Studies - Blog Company - About Us - Contact Us - Careers - Partner - Sustainability - Privacy Policy - – Privacy Statement - \- Disclaimer - Cookie Policy (EU) - Cookie Policy (UK) - Employee Login - Opt-out preferences - SQL Connect \| Terms & Conditions - SplashBI AI Policy © 2026 All Rights Reserved \| Splash Business Intelligence Inc. - Privacy & Policy Crawl, Walk, Run, Ask – 26th Mar 2026 \| OHUG’s Spring Fling Register Now