Last updated: March 2025
Quick Answer
The average cost per hire is $4,700 (SHRM). This includes job advertising, recruiter fees, interview costs, onboarding, and training. The true cost is often 3-4x the position's salary when including lost productivity.
Key Takeaways
- ✓ Average cost per hire is $4,700 (SHRM), but true costs are often 3–4× salary
- ✓ Include: job ads, recruiter fees, interviews, onboarding, training
- ✓ Employee referrals are typically the most cost-effective channel
- ✓ Reducing turnover is the best way to reduce hiring costs
What Is Cost Per Hire?
Cost per hire is the total amount to fill an open position, from recruiting through onboarding. SHRM's average is $4,700, but real cost including lost productivity is often 3–4× monthly salary.
Cost Breakdown
Job Advertising
Job boards: $200–$500 per posting. Sponsored listings: $500–$2,000+ for competitive roles.
Recruiter Fees
External recruiters: 15–25% of first-year salary. For an $80K position, that's $12,000–$20,000.
Interviews and Onboarding
Interviewer time, travel, assessments, equipment, training. New hires typically take 3–6 months to reach full productivity.
Reducing Costs
- Employee referrals — Faster, cheaper, higher retention
- Build a pipeline — Engage candidates before positions open
- Reduce turnover — Track with our Turnover Calculator
Frequently Asked Questions
What is cost per hire?
Cost per hire is the total cost of filling a position, including job advertising, recruiter fees, interview expenses, background checks, onboarding, and training. The SHRM average is around $4,700.
How can I reduce hiring costs?
Use employee referral programs, build a talent pipeline, streamline your interview process, improve employer branding, and retain existing employees to reduce turnover.