{"id":100,"date":"2026-09-22T20:43:29","date_gmt":"2026-09-22T20:43:29","guid":{"rendered":"http:\/\/localhost:8080\/smallhrtools\/blog\/?p=66"},"modified":"2026-10-21T20:38:46","modified_gmt":"2026-10-21T20:38:46","slug":"cost-per-hire-formula-shrm-worked-example","status":"publish","type":"post","link":"https:\/\/smallhrtools.com\/blog\/cost-per-hire-formula-shrm-worked-example\/","title":{"rendered":"Cost Per Hire: The SHRM\/ANSI Formula With a Complete Cost Inventory"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/smallhrtools.com\/blog\/cost-per-hire-formula-shrm-worked-example\/#The_standard_briefly\" >The standard, briefly<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/smallhrtools.com\/blog\/cost-per-hire-formula-shrm-worked-example\/#The_complete_cost_inventory\" >The complete cost inventory<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/smallhrtools.com\/blog\/cost-per-hire-formula-shrm-worked-example\/#External_costs_the_visible_ones\" >External costs (the visible ones)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/smallhrtools.com\/blog\/cost-per-hire-formula-shrm-worked-example\/#Internal_costs_the_invisible_ones\" >Internal costs (the invisible ones)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/smallhrtools.com\/blog\/cost-per-hire-formula-shrm-worked-example\/#Worked_example_12_hires_in_a_half-year\" >Worked example: 12 hires in a half-year<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/smallhrtools.com\/blog\/cost-per-hire-formula-shrm-worked-example\/#Whats_a_%E2%80%9Cgood%E2%80%9D_cost_per_hire\" >What&#8217;s a &#8220;good&#8221; cost per hire?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/smallhrtools.com\/blog\/cost-per-hire-formula-shrm-worked-example\/#Using_CPH_to_make_actual_decisions\" >Using CPH to make actual decisions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/smallhrtools.com\/blog\/cost-per-hire-formula-shrm-worked-example\/#Frequently_Asked_Questions_%E2%80%93_FAQs\" >Frequently Asked Questions &#8211; FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/smallhrtools.com\/blog\/cost-per-hire-formula-shrm-worked-example\/#Do_internal_transfers_count_as_hires_in_the_denominator\" >Do internal transfers count as hires in the denominator?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/smallhrtools.com\/blog\/cost-per-hire-formula-shrm-worked-example\/#Are_signing_bonuses_really_recruiting_costs\" >Are signing bonuses really recruiting costs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/smallhrtools.com\/blog\/cost-per-hire-formula-shrm-worked-example\/#How_often_should_we_measure\" >How often should we measure?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/smallhrtools.com\/blog\/cost-per-hire-formula-shrm-worked-example\/#What_about_the_cost_of_a_bad_hire_we_let_go_at_month_4\" >What about the cost of a bad hire we let go at month 4?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<p class=\"wp-block-paragraph\"><strong>Short answer:<\/strong> the SHRM\/ANSI standard defines cost per hire as:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>CPH = (Total internal recruiting costs + Total external recruiting costs) \u00f7 Number of hires in the period<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">The formula is trivial; the discipline is in the <strong>cost inventory<\/strong> &#8211; most companies count job boards and agency fees, forget recruiter salaries and interviewer time, and end up reporting a number 40-60% below reality. Below is the complete inventory, a 12-hire worked example landing at <strong>$4,140 per hire<\/strong>, and the two questions that make the metric useful: <em>what should be in the numerator<\/em> and <em>when is a high CPH actually good<\/em>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_standard_briefly\"><\/span>The standard, briefly<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">SHRM and ANSI published the cost-per-hire standard (ANSI\/SHRM-06-2012) to stop every company inventing its own definition. Two design decisions matter:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Both internal and external costs count.<\/strong> Internal = costs of your own people and infrastructure doing recruiting work. External = money paid to outside parties.<\/li>\n\n\n\n<li><strong>The denominator is total hires in the measurement period<\/strong> &#8211; all requisition types, internal and external candidates alike (you can segment later; the headline number includes everything).<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">What&#8217;s deliberately <strong>excluded<\/strong>: post-start costs. Onboarding, training, ramp-up productivity loss &#8211; real money, but they belong to <em>cost of turnover<\/em>, not cost per hire. Keeping the boundary clean is what makes your number comparable over time. (For the full-lifecycle number, see <a href=\"https:\/\/smallhrtools.com\/blog\/real-cost-of-employee-turnover-worked-model\/\">the real cost of employee turnover<\/a>, where cost per hire is one of four buckets.)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_complete_cost_inventory\"><\/span>The complete cost inventory<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"External_costs_the_visible_ones\"><\/span>External costs (the visible ones)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Item<\/th><th>Commonly missed?<\/th><\/tr><\/thead><tbody><tr><td>Job boards, LinkedIn job slots\/ads, sponsored posts<\/td><td>No<\/td><\/tr><tr><td>Agency and search-firm fees<\/td><td>No<\/td><\/tr><tr><td>Background checks, assessments, skills-test platforms<\/td><td>Sometimes<\/td><\/tr><tr><td>ATS and sourcing-tool subscriptions (prorated to the period)<\/td><td><strong>Yes<\/strong><\/td><\/tr><tr><td>Career-fair fees, campus recruiting, sponsorships<\/td><td>Sometimes<\/td><\/tr><tr><td>Employer-branding spend attributable to hiring (careers-page work, videos)<\/td><td><strong>Yes<\/strong><\/td><\/tr><tr><td>Candidate travel and interview expenses<\/td><td>Sometimes<\/td><\/tr><tr><td>Referral bonuses paid<\/td><td><strong>Yes<\/strong> &#8211; it&#8217;s external per the standard<\/td><\/tr><tr><td>Relocation and signing bonuses<\/td><td><strong>Yes<\/strong> (include if you follow the standard strictly)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Internal_costs_the_invisible_ones\"><\/span>Internal costs (the invisible ones)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Item<\/th><th>Commonly missed?<\/th><\/tr><\/thead><tbody><tr><td>Recruiter\/TA salaries + benefits (prorated to recruiting time)<\/td><td><strong>Yes<\/strong> &#8211; usually the single largest line<\/td><\/tr><tr><td>Hiring-manager and interviewer time (loaded hourly cost \u00d7 interview hours)<\/td><td><strong>Yes<\/strong><\/td><\/tr><tr><td>Sourcing time by non-recruiters (that engineer doing outreach)<\/td><td>Almost always<\/td><\/tr><tr><td>Recruiting-ops\/coordinator time (scheduling, offers, compliance)<\/td><td>Usually<\/td><\/tr><tr><td>Fixed infrastructure: office share of the TA team, phone\/systems<\/td><td>Usually<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The single most common error: a &#8220;recruiting team of one HR generalist&#8221; who spends 40% of her time hiring contributes 40% of her loaded cost to the numerator &#8211; even though no invoice exists.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"572\" src=\"https:\/\/smallhrtools.com\/blog\/wp-content\/uploads\/2026\/09\/Cost-per-hire_inventory_infographic-1024x572.jpg\" alt=\"Cost Per Hire Inventory Infographic\" class=\"wp-image-375\" srcset=\"https:\/\/smallhrtools.com\/blog\/wp-content\/uploads\/2026\/09\/Cost-per-hire_inventory_infographic-1024x572.jpg 1024w, https:\/\/smallhrtools.com\/blog\/wp-content\/uploads\/2026\/09\/Cost-per-hire_inventory_infographic-300x167.jpg 300w, https:\/\/smallhrtools.com\/blog\/wp-content\/uploads\/2026\/09\/Cost-per-hire_inventory_infographic-767x428.jpg 767w, https:\/\/smallhrtools.com\/blog\/wp-content\/uploads\/2026\/09\/Cost-per-hire_inventory_infographic.jpg 1376w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Worked_example_12_hires_in_a_half-year\"><\/span>Worked example: 12 hires in a half-year<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A 60-person company makes 12 hires (mixed roles) in January-June. One part-time internal recruiter (50% allocation), one agency hire, the rest direct.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>External costs:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Item<\/th><th>Amount<\/th><\/tr><\/thead><tbody><tr><td>Job boards + LinkedIn<\/td><td>$5,400<\/td><\/tr><tr><td>Agency fee (1 hire \u00d7 18% \u00d7 $75,000)<\/td><td>$13,500<\/td><\/tr><tr><td>Background checks &amp; assessments (12 \u00d7 $150)<\/td><td>$1,800<\/td><\/tr><tr><td>ATS subscription (6 months)<\/td><td>$2,400<\/td><\/tr><tr><td>Referral bonuses (3 \u00d7 $1,500)<\/td><td>$4,500<\/td><\/tr><tr><td><strong>External subtotal<\/strong><\/td><td><strong>$27,600<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Internal costs:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Item<\/th><th>Amount<\/th><\/tr><\/thead><tbody><tr><td>Recruiter: 50% of $68,000 loaded, half a year<\/td><td>$17,000<\/td><\/tr><tr><td>Interviewer time: 12 hires \u00d7 ~14 interview-hours each \u00d7 $55\/hr loaded<\/td><td>$9,240 (round: $9,200)<\/td><\/tr><tr><td>Hiring-manager JD\/debrief\/offer time: 12 \u00d7 4 hrs \u00d7 $75\/hr<\/td><td>$3,600<\/td><\/tr><tr><td>Coordination and scheduling (admin share)<\/td><td>$2,300<\/td><\/tr><tr><td><strong>Internal subtotal<\/strong><\/td><td><strong>$32,100<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>CPH = (27,600 + 32,100) \u00f7 12 = 59,700 \u00f7 12 \u2248 $4,975 per hire<\/strong><\/p>\n<\/blockquote>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"572\" src=\"https:\/\/smallhrtools.com\/blog\/wp-content\/uploads\/2026\/09\/Infographic_showing_hiring_costs-1024x572.jpg\" alt=\"Infographic Showing Hiring Costs\" class=\"wp-image-377\" srcset=\"https:\/\/smallhrtools.com\/blog\/wp-content\/uploads\/2026\/09\/Infographic_showing_hiring_costs-1024x572.jpg 1024w, https:\/\/smallhrtools.com\/blog\/wp-content\/uploads\/2026\/09\/Infographic_showing_hiring_costs-300x167.jpg 300w, https:\/\/smallhrtools.com\/blog\/wp-content\/uploads\/2026\/09\/Infographic_showing_hiring_costs-767x428.jpg 767w, https:\/\/smallhrtools.com\/blog\/wp-content\/uploads\/2026\/09\/Infographic_showing_hiring_costs.jpg 1376w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Two observations that generalize. First, <strong>internal costs exceeded external<\/strong> ($32.1k vs $27.6k) &#8211; typical once you count people-time honestly, and exactly the half that unaudited CPH numbers omit. Second, the agency hire is doing violence to the average: strip it out and the direct-hire CPH is (59,700 &#8211; 13,500) \u00f7 11 \u2248 <strong>$4,200<\/strong>, so the agency hire effectively cost ~$17,700. That&#8217;s not automatically bad &#8211; it depends what the seat vacancy was costing per week (<a href=\"https:\/\/smallhrtools.com\/blog\/time-to-fill-vs-time-to-hire\/\">time to fill<\/a> math) &#8211; but it should be a <em>decision<\/em>, not an accident of averaging. Run your own split-by-channel numbers in the <a href=\"https:\/\/smallhrtools.com\/tools\/cost-per-hire-calculator\/\">Cost Per Hire Calculator<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"572\" src=\"https:\/\/smallhrtools.com\/blog\/wp-content\/uploads\/2026\/09\/Infographic_analyzing_agency_hire_effect-1024x572.jpg\" alt=\"Infographic Analyzing Agency Hire Effect\" class=\"wp-image-379\" srcset=\"https:\/\/smallhrtools.com\/blog\/wp-content\/uploads\/2026\/09\/Infographic_analyzing_agency_hire_effect-1024x572.jpg 1024w, https:\/\/smallhrtools.com\/blog\/wp-content\/uploads\/2026\/09\/Infographic_analyzing_agency_hire_effect-300x167.jpg 300w, https:\/\/smallhrtools.com\/blog\/wp-content\/uploads\/2026\/09\/Infographic_analyzing_agency_hire_effect-767x428.jpg 767w, https:\/\/smallhrtools.com\/blog\/wp-content\/uploads\/2026\/09\/Infographic_analyzing_agency_hire_effect.jpg 1376w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Whats_a_%E2%80%9Cgood%E2%80%9D_cost_per_hire\"><\/span>What&#8217;s a &#8220;good&#8221; cost per hire?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Published averages hover around <strong>$4,000-$5,000 per hire<\/strong> (US, cross-industry), with executive hires at $15,000-$30,000+ and high-volume hourly roles at a few hundred dollars. But CPH is the <em>most<\/em> context-dependent HR metric there is, so treat benchmarks as sanity checks only:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>CPH falls with volume.<\/strong> Fixed costs (recruiter, ATS) amortise across more hires &#8211; a hiring-freeze quarter with 2 hires will show a terrifying CPH without anything being wrong.<\/li>\n\n\n\n<li><strong>A low CPH can be a bad sign.<\/strong> Underinvesting in assessment shows up later as early attrition, which costs 10-20\u00d7 the savings (<a href=\"https:\/\/smallhrtools.com\/blog\/real-cost-of-employee-turnover-worked-model\/\">turnover math<\/a>). CPH must be read alongside quality-of-hire and 90-day retention.<\/li>\n\n\n\n<li><strong>The trend beats the level.<\/strong> Same inventory, same period-length, quarter after quarter &#8211; that&#8217;s when CPH starts revealing things: a creeping agency dependence, an interviewer-hours explosion, a referral program paying for itself.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Using_CPH_to_make_actual_decisions\"><\/span>Using CPH to make actual decisions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Channel ROI:<\/strong> compute CPH per source (referral vs job board vs agency). Referrals usually win on both cost <em>and<\/em> 90-day retention &#8211; which justifies raising the referral bonus, not lowering it.<\/li>\n\n\n\n<li><strong>Recruiter capacity:<\/strong> if internal cost per hire is climbing, check whether your recruiter is over capacity before adding process &#8211; the <a href=\"https:\/\/smallhrtools.com\/tools\/recruiter-capacity-calculator\/\">Recruiter Capacity Calculator<\/a> gives you the load math.<\/li>\n\n\n\n<li><strong>Budgeting:<\/strong> next year&#8217;s recruiting budget \u2248 planned hires \u00d7 trailing CPH, adjusted for mix. This is the one line CFOs accept without argument, because the inventory is auditable.<\/li>\n\n\n\n<li><strong>Build vs buy:<\/strong> the agency-premium calculation above ($17,700 vs $4,200) is the honest input to &#8220;should we hire a second in-house recruiter&#8221; &#8211; one recruiter at $70k loaded pays for herself at roughly 5-6 agency-displaced hires a year.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_%E2%80%93_FAQs\"><\/span>Frequently Asked Questions &#8211; FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1792615076379\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Do_internal_transfers_count_as_hires_in_the_denominator\"><\/span><strong>Do internal transfers count as hires in the denominator?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Under the standard, yes for the headline number &#8211; but report internal-fill CPH separately, since it&#8217;s structurally cheaper and will flatter your average.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1792615086236\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Are_signing_bonuses_really_recruiting_costs\"><\/span><strong>Are signing bonuses really recruiting costs?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The standard includes them as external costs. Many teams exclude them for internal trend-tracking because they&#8217;re compensation-like and lumpy &#8211; fine, as long as your definition is written down and constant.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1792615097019\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"How_often_should_we_measure\"><\/span><strong>How often should we measure?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Quarterly for trend, annually for budgeting. Monthly CPH at small hire counts is noise &#8211; one agency hire swings the whole month.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1792615114024\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_about_the_cost_of_a_bad_hire_we_let_go_at_month_4\"><\/span><strong>What about the cost of a bad hire we let go at month 4?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>That&#8217;s turnover cost, not cost per hire &#8211; but the <em>replacement<\/em> search generates a second CPH for the same seat, which is why the two metrics belong in the same review pack.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Calculators referenced: <a href=\"https:\/\/smallhrtools.com\/tools\/cost-per-hire-calculator\/\">Cost Per Hire<\/a> \u00b7 <a href=\"https:\/\/smallhrtools.com\/tools\/recruiter-capacity-calculator\/\">Recruiter Capacity<\/a> \u00b7 <a href=\"https:\/\/smallhrtools.com\/tools\/time-to-fill-calculator\/\">Time to Fill<\/a> \u00b7 <a href=\"https:\/\/smallhrtools.com\/tools\/time-to-hire-calculator\/\">Time to Hire<\/a> \u00b7 <a href=\"https:\/\/smallhrtools.com\/tools\/retention-rate-calculator\/\">Retention Rate<\/a>. Figures follow the ANSI\/SHRM cost-per-hire standard; benchmark ranges are directional. Build the inventory with your own numbers before budgeting.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SHRM\/ANSI cost-per-hire formula worked end to end: the full internal and external cost inventory, a 12-hire worked example, and what a good CPH is.<\/p>\n","protected":false},"author":1,"featured_media":128,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-100","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guides"],"_links":{"self":[{"href":"https:\/\/smallhrtools.com\/blog\/wp-json\/wp\/v2\/posts\/100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/smallhrtools.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/smallhrtools.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/smallhrtools.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/smallhrtools.com\/blog\/wp-json\/wp\/v2\/comments?post=100"}],"version-history":[{"count":6,"href":"https:\/\/smallhrtools.com\/blog\/wp-json\/wp\/v2\/posts\/100\/revisions"}],"predecessor-version":[{"id":381,"href":"https:\/\/smallhrtools.com\/blog\/wp-json\/wp\/v2\/posts\/100\/revisions\/381"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/smallhrtools.com\/blog\/wp-json\/wp\/v2\/media\/128"}],"wp:attachment":[{"href":"https:\/\/smallhrtools.com\/blog\/wp-json\/wp\/v2\/media?parent=100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/smallhrtools.com\/blog\/wp-json\/wp\/v2\/categories?post=100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/smallhrtools.com\/blog\/wp-json\/wp\/v2\/tags?post=100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}