Use this calculator to determine your aproximate cost of hiring an employee. The Cost Per Hire formula is very simple and is based on the Cost Per Hire model developed by the Staffing Management Association (SMA) and the Saratoga Institute a few years ago.
Formula:
CPH = AC + AF + ERC + TE + RE + (TRAC * 0.1)
Where:
| CPH | = | Cost Per Hire |
| AC | = | Agency Fees |
| AF | = | Advertising Costs |
| ERC | = | Employee Referral Costs |
| TE | = | Travel Expenses |
| RE | = | Relocation Expenses |
| TRAC | = | Total Recruiter and Administration Costs * |
* Assuming that the internal recruiter and administrative staff perform other duties in the firm, the studies by conducted by SMA and Saratoga Institute concluded that a 10% figure for proration was a historical estimate of the costs involved for a hire.
Note: This calculator is provided for educational purposes and cannot be used to make financial decisions. The Human Equation, Inc. makes no claims or guarantees about the accuracy or the reliability of these calculations. The Human Equation, Inc. is NOT affiliated and does NOT endorse the Staffing Management Association (SMA) nor the Saratoga Institute.
Simply enter numbers in the calculator fields below. The results will appear automatically on the bottom of the page.
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