Small Business Glossary and Definitions

Cost-Per-Hire (CPH) is a frequently used metric in human resources that determines the cost to fill an vacant position in a company. It is intended to be used by all types of organizations, from non-profits to large corporations to governments. It is especially useful for their human resources or personnel departments, who must calculate, analyze and report projected recruitment costs to superiors. The metric’s use goes back decades, since it helps managers and personnel directors to not only establish budgets but provides a benchmark for the efficiency of recruiting efforts and staffing processes. It also has the flexibility to be adapted to different areas of the organization.