Recruiting & Hiring Expense per Employee

Benchmarking Report

Recruiting & Hiring Expense per Employee

This PDF report includes benchmarking data (in a visual, chart-based format), an comprehensive KPI definition, characteristics of high performers and technical details on measuring Recruiting & Hiring Expense per Employee. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.

What is Recruiting & Hiring Expense per Employee?

The total recruiting and hiring expense incurred divided by the total number of employees working for the organization over the same period of time. Recruiting and hiring expenses typically includes labor, third-party recruiter fees, job advertising costs, technology costs, travel costs, and other overhead related to attracting, screening and onboarding new employees.

Why should Recruiting & Hiring Expense per Employee be measured?

Recruiting & Hiring Expense per Employee measures the cost of attracting and screening new team members on a per employee basis (i.e., average cost per employee). Not to be confused with Cost per Hire, this metric monitors the company's spending on these functions relative to the size of the company itself (not per new hire). Attracting and retaining high quality talent it vital to the success of nearly any business, therefore recruiting and hiring expense typically consumes a relatively large portion (in some cases, 25% or more) of the total HR budget, particularly in industries that rely highly-skilled knowledge workers to gain a competitive advantage (e.g., financial services, high-tech, pharmaceuticals, etc.). There are, however, many factors that can increase the cost of recruiting and hiring, including high turnover rates, low employee satisfaction, unproductive recruiting staff, cumbersome screening processes, and inefficient use of third-party recruiting channels (e.g., poorly allocated spending on job postings, third-party vendors, etc.).

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