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Human Resources Policy Manual

COST OF HIRING CALCULATOR

Employers often use Cost of Hiring to measure the effectiveness and efficiency of recruiting,
selection, and training activities. It essentially takes into account all direct and indirect costs
associated with the process of hiring an employee. It is often used to measure the costs
associated with employee turnover, that is, filling a vacancy that is a result of an employee
resignation or termination.
The calculator found in the 'Calculator' tab of this workbook will assist you in capturing all
relevant costs that should be considered when determining the costs to your organization each
time you need to hire a new employee.
In many sections of the calculator, you should also consider the salary and benefits costs of the
employee performing the task, for example, in the Selection section, you are asked to provide
the cost of Interviewing. This cost should be determined by identifying the number of hours
spent interviewing candidates, including preparation time and time spent writing up interview
notes, by all company employees involved in the interview process. Each persons hours
should be multiplied by their hourly cost (salary and benefits) and added together to determine
the total cost of Interviewing.

Dates Vacant: _________________ to _________________

Cost per hour # of hours Total costs
Temporary Staffing
Temporary help
Temp Agency costs
Overtime - current staff
Other

$
$
$
$

$
$
$
$
$

$
$
$

$
$
$
$
$
$
$

$
$
$
$

Recruitment
Creating job posting
Advertising
Recruiter fees
Job fair costs
Other
Selection
Screening
Interviewing
Travel
Referral Award
Orientation & Training
Orientation
Uniforms, equipment
Benefits
Training/coaching
License/certificate
Administration
Other
Other Costs
Lost Revenue
Productivity
Loss of clients
Other

Total Cost: