When companies hire, the costs incurred can take a significant portion of the HR budget and the total operating expenses.

Agency fees of 20 to 30 percent of the new hire’s base salary have a heavy financial impact when you’re adding more than 1 new hire per year to your team.

Whether you are using the new electronic methods or the traditional hiring tactics, having a standard and effective way of measuring your cost per hire is essential to evaluating your recruiting effectiveness and efficiency.

Basic costs can include:

1. Advertising

2. Agency and search firm fees

3. Referral bonuses paid to employees

4. Travel costs incurred by both recruiters and applicants

5. Relocation costs

6. Company recruiter costs (including salary and benefits)

These six factors account for 90 percent of the costs to hire.

Chiltern Business Training can help save you money by offering FREE recruitment services to local businesses. Government funding allows us to support employers in finding potential new talent from the local area to help increase employment.