How to Calculate the Average Cost of Hiring a New Employee

The hiring game has become a minefield in recent years. As businesses try to survive and grow in an ever-evolving working world, recruiting strategies are hampered by skills shortages, budget constraints and change management in the wake of new technologies. Companies hiring rely on lots of different channels and third-parties to support their recruitment and talent acquisition. That makes calculating the average cost of hiring a new employee very difficult.
However, it’s important to know your cost per hire. You want to make sure that you’re not haemorrhaging money on recruiting processes that are inefficient, ineffective and don’t futureproof your workforce. Learn how to calculate the average cost of hiring a new employee in this blog.

Do you know your average cost per hire for new employees?

This is an honest question but one that most businesses can’t answer with much accuracy or confidence. Do you know your average cost per hire (CPH)?
Did you know that 8 in 10 companies don’t know the costs of hiring employees?
That’s a pretty damning statistic but it’s not surprising to us. At pepelwerk, we know that many employers are suffering from outdated systems and methods of recruitment no longer appropriate for this era. But employers are under pressure to source skilled staff to meet the needs of their customers, especially on-demand, seasonal and specialist talent. It’s easy to see why hiring costs can escalate and become hard to quantify.

Leave a Comment

Your email address will not be published. Required fields are marked *