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    Glossary Term

    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.

    MetricReferral-Based HiringTraditional HiringImpact
    Average Cost Per Hire~$2,400~$4,70049% Cost Savings
    Time-to-Hire29 Days42 Days31% Faster
    2-Year Retention Rate85%60%25% Higher Retention
    Quality of Hire Score8.5/107.0/10Improved 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.

    Frequently Asked Questions

    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.

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    People Analytics

    Related Terms

    Applicant Tracking Systems (ATS)

    An Applicant Tracking System (ATS) is recruiting software that centralizes job postings, résumé intake, and candidate evaluation into one platform. It parses resumes for skills and experience, ranks candidates against role requirements, and automates communications, replacing manual spreadsheets and fragmented email threads.