Calculating The Cost Per Hire
Calculating The Cost Per Hire
Calculating The Cost Per Hire
To estimate the cost per hire, many variables can be taken into scope. The data below
provides a comprehensive (but definitely not exhaustive) overview of external and
internal cost factors. The external and internal cost factors are defined by ISO (the
International Organization for Standardization) as part of ISO norm 30407. The data is
copied with permission.
Background checks and eligibility to work Expenses related to criminal, education, background, eligibility to work, and
expenses reference checks
Consulting services Expenses related to third party consultancies and legal services
Immigration expenses Legal and agency expenses required for arranging work permits and/or visas
All expenses related to job fairs and other recruitment expenses, including
Job fair/recruiting event expenses costs of attendance, transport, on-site booth and other materials, and travel
expenses
Any fees for relocation, including travel costs, (temporary) housing, or one-off
Relocation fees
packages
Internal overhead for government Incremental internal labor expenses involved in creating, submitting,
compliance monitoring and processing materials to comply with governmental regulations
Secondary management cost of time for Multiply number of hours by an appropriate internal rate to determine
events estimated total cost of employee time spend on recruiting events
Secondary management cost of time for Multiply number of interviews by an appropriate internal rate to
recruiting determine estimated total cost of hiring manager time