Why the Cost Per Hire Metric Isn’t What You Think It Is
Hiring is expensive.
But here’s the surprising part: most companies don’t know how expensive.
They know their ATS subscription costs X. They know they spent Y on agencies last quarter. They know interview time chews up hours in their diary. But when it comes to putting a figure on the true cost of hiring a single person? Most companies are flying blind.
And that’s a problem.
Because if you don’t know the cost of hiring, how do you improve it? How do you cut waste? Scale smarter? Prove the value of what your team brings to the business?
This is where Cost per Hire steps in. Not as another line item. But as a baseline. A number that doesn’t just tell you where you are but helps you decide where to go next.
And it’s not just for the finance team.
Let me show you how this number matters to everyone involved in hiring.
For Talent Acquisition Teams: Prove Your Value
Recruiters are the unsung heroes of business growth. You make magic happen—filling roles, engaging candidates, and saving the business from crippling vacancies.
But proving the ROI of your work? That’s the tough bit.
Knowing your Cost per Hire gives you the power to back up your instincts with data.
It shows where your time and resources are going—and where there’s room to improve.
Like trimming unnecessary tech spend. Or reducing reliance on agencies. Or speeding up the interview process to save money and keep top talent from slipping through the cracks.
Because when you can show the impact of your work? The business starts listening.
For Founders, Execs, or Hiring Managers: The Clarity You’ve Been Missing
Let’s face it. You’re busy.
You’re juggling budgets, growth plans, and the million other things it takes to scale a company. Hiring? It’s critical. But it’s also messy.
Tech subscriptions here. Agency invoices there. Weeks of interviews pulling teams out of their day jobs. And you’re left asking: is this efficient?
The Cost per Hire metric cuts through the noise. It shows you, in pounds and pence, what hiring actually costs. Not just the big-ticket expenses. But the hidden ones too—like the time drain of endless interviews.
Once you know the number, you can start asking better questions.
Like:
When you know better, you scale better.
For HR and People Leaders: Your Secret Weapon
You’re the glue that holds the organisation together.
But let’s be honest—when it comes to proving the value of People Ops, the numbers don’t always work in your favour.
Headcount costs? Easy to calculate. Hiring costs? Not so much.
The Cost per Hire metric is a lifeline. It gives you hard data to justify investments in better tools or more support. It opens up conversations about efficiencies (or inefficiencies) in your hiring process.
And it helps you highlight what’s working—and what’s not—so you can bring solutions to the table, not just problems.
For Candidates: A Window into the Process
Yes, even candidates feel the impact of the Cost per Hire.
Ever been through a hiring process that felt slow? Disorganised? Endless? That’s inefficiency in action.
When teams know their Cost per Hire, they start to care about improving it. That means fewer delays. A smoother, faster process. And a better experience for the people on the other side of the table.
Because when hiring teams make better decisions, everyone wins.
The Big Question: What’s Next?
Knowing your Cost per Hire is just the start.The real value? Comes when you act on it.
When you see where your money is going. When you spot inefficiencies dragging your team down. When you make decisions that cut waste, improve processes, and scale smarter.
So, here’s my challenge to you:
Do you know your Cost per Hire?
If not, don’t worry.
We’ve built a simple, powerful tool to help you figure it out.
Try Screenloop’s Cost per Hire Calculator here. Because when you understand the numbers, you don’t just hire better. You build better.
Let’s start there.