Plain-language questions
Ask for cost per hire per month, customer or product in the SQL Explorer with AI. The AI writes the SQL, you see the query and run it yourself; the AI only receives metadata.
KPI · HR
Cost per hire: formula and example.
Cost per hire is the average recruitment cost of one new employee. You divide all recruitment costs in a period, external and internal, by the number of hires. It helps you compare recruitment channels and justify the recruitment budget.
Cost per hire formula
(External recruitment costs + internal recruitment costs) ÷ number of hires
Worked example
In 2025 Acme Groothandel spent €72,000 on recruitment: agencies, job boards, advertising and the recruiter's time. It hired 24 people. The cost per hire is €72,000 ÷ 24 = €3,000.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
A lower cost per hire is good, but only if the quality of hires holds up. Compare by job family and by channel, and set it against early turnover: cheap hiring that leads to quick departures ends up expensive. Track the trend over several years, because a few costly vacancies can skew a single year.
Pitfalls with cost per hire
- Counting only external costs and forgetting the time spent by recruiters and hiring managers.
- Comparing costs and hires from different periods, even though recruitment often spans a year end.
- Lumping job families together, so expensive specialist hiring distorts the average.
SQL & DAX
Calculating cost per hire in SQL and DAX
Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.
SELECT date_trunc('year', filled_at)::date AS year,
SUM(offers_accepted) AS hires,
SUM(recruitment_cost) AS recruitment_cost,
ROUND(SUM(recruitment_cost) / NULLIF(SUM(offers_accepted), 0), 0) AS cost_per_hire
FROM vacancies
WHERE filled_at IS NOT NULL
GROUP BY 1
ORDER BY 1;Recruitment Cost = SUM ( Vacancies[RecruitmentCost] )
Cost per Hire = DIVIDE ( [Recruitment Cost], SUM ( Vacancies[OffersAccepted] ) )In ENABLE
Tracking this KPI in ENABLE
In your Power BI dashboard
Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.
Custom dashboards (pilot)
Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.
Monthly targets
With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.
FAQ
Frequently asked questions
How do you calculate cost per hire?
Add up all recruitment costs in a period, such as agency fees, job boards, advertising, assessments and internal time spent on hiring. Divide that total by the number of people hired in the period. Record which cost types you include.
What costs are included in cost per hire?
External costs such as agencies, job boards, advertising and assessments, plus internal costs such as recruiters' and hiring managers' time. Onboarding costs after the start date are usually excluded. Be consistent, or years and channels will not be comparable.
How can you reduce cost per hire?
Look at which channels deliver the most suitable candidates per euro and move budget there. Internal moves and referrals are often cheaper than agencies. Do check that the quality and retention of new hires stay the same.
Further reading
- KPI libraryHR KPIs: formulas and examplesHR KPIs cover staffing, absence, turnover and recruitment. This is sensitive data: show it only to people who are allowed to see it, and do not report on groups so small that individuals can be identified.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
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