Cost per Hire vs Employee Cost: Two Different Budgets worksheet

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Completed reference
Item	Quantity / rate	USD cost
External advertising	Invoices	1200
Agency/screening	Invoices	1800
Recruiter effort	30 × 40	1200
Manager interviews	20 × 60	1200
Total recruitment	Sum	5400
Completed hires	Starts	2
Cost per hire	5400 / 2	2700
First year before recruitment	Illustrative role	58600
First year including recruitment	58600 + 2700	61300

Your case

Business / period / source records / assumptions / reviewer / decision / review date

Blank worksheet
Item	Quantity / rate	USD cost
External advertising	Enter here	Enter here
Agency/screening	Enter here	Enter here
Recruiter effort	Enter here	Enter here
Manager interviews	Enter here	Enter here
Total recruitment	Enter here	Enter here
Completed hires	Enter here	Enter here
Cost per hire	Enter here	Enter here
First year before recruitment	Enter here	Enter here
First year including recruitment	Enter here	Enter here

Method and controls

Define the recruiting numerator and the hires denominator

Cost per hire = (included external recruiting costs + included internal recruiting costs) ÷ completed hires. External costs may include job ads, agency fees and screening. Internal costs may include recruiting staff and documented interviewer time. Use one written cost policy so months and roles can be compared.

Count actual hires using a consistent event, such as accepted offers or starts, and disclose which event you use. An open vacancy is not a hire. When a period has costs but zero hires, the ratio is undefined; report the spend and zero denominator rather than returning $0 cost per hire. Multi-month campaigns need a reconciliation so costs and outcomes are not silently moved between periods.

Calculate a completed two-hire campaign

Original fictional recruiting period
Item	Calculation	Cost
Job advertising	Campaign invoices	$1,200
Agency/screening	Separate invoice records	$1,800
Recruiter effort	30 hours × $40	$1,200
Manager interviews	20 hours × $60	$1,200
Total recruiting cost	External $3,000 + internal $2,400	$5,400
Completed hires	Two starts	2
Cost per hire	$5,400 ÷ 2	$2,700

The hourly values are planning assumptions, not current pay benchmarks. If interviewer salary is already in the internal recruiting pool, do not add the same hours again. A cash-only view might show $3,000 external spend, but it omits $2,400 of valued staff effort; label the two views rather than comparing them as identical metrics.