Keep track of the costs related to hiring new employees, with this Cost to Hire Template.
Calculating the true cost to hire employees can include a huge variety of factors, and to make things even more difficult, the indirect costs related to turnover and hiring can be hard to measure.
To make things a little bit easier, this spreadsheet is designed so that you can plug in the costs associated with hiring – throughout the entire cycle of listing and advertising openings, to interviewing and screening, plus the on-boarding and training costs.
See a demo of this video, here:
How it works ~
When it comes to calculating an actual cost per hire at your company, it’s important to determine a specific date range, where the costs are broken down so you know which costs are related to a group of hires.
If your company participates in advertising or subscriptions that have an annual fee, but provide marketing for your openings year round, you’ll want to be sure to divide that annual fee out so you can get an accurate costs for the time period you are evaluating your cost to hire.
The Standard Expenses page is set up so you can enter the annual expenses, and it will break down those amounts monthly:
The template is set up to be extremely flexible and while the file comes with some standard expense categories, you’ll be able to add your own specific expense categories as well.
There will be 3 main pages for dividing up the expenses related to hiring:
Recruitment Costs – this consists of the costs related to advertising, outreach and marketing of the open positions.
Selection Costs – this includes the expenses related to sifting through applications, interviewing, testing, etc.
Training Costs – this includes the costs associated with on-boarding a new employee. This can include formal or informal on-the-job training, costs related to other employees taking time out to train, relocation, sign on bonuses, etc.
Within each of these 3 main areas, you’ll be able to add up to 20 expense categories. You’ll just need to enter the category in column A, and then it gets populated in the drop down list when you go to enter the details:
The cost of hiring also includes time spent by recruiting staff and other employees involved in the administrative or interviewing activities. In order to accurately track these costs, the template is also set up with a page to enter up to 10 employees or positions.
If the employee pay is confidential, you may prefer to use averages per title instead of specific employee’s and their salaries. The idea is to get a cost estimate related to their time spent on the 3 main categories related to recruiting.
As you enter the expenses, you will also be able to select the employee or position, and enter the time spent on the various categories. The file will calculate the total cost based on the time spent and the hourly rates entered in the other page.
The main summary pages will bring it all together, with the ability to select different monthly ranges and the associated cost per hires. All you’ll need to do is enter the number of candidates hired in each month, and the rest of the information will populate and calculate the cost per hire for you.
You will receive an Excel spreadsheet, along with PDF directions on how to use the template, via email.
Each purchase will come personalized with the company name of your choice. All templates are to be used by the company bought for only and are not to be distributed outside the organization.
Custom Changes – I would love to help customize a spreadsheet for your specific situation! My background is in Compensation/HR. I earned the CCP (certified compensation professional) in 2014 and PHR in 2004. I have almost 10 years experience working in a Compensation Analyst role at a large cement manufacturing company and a retail company.
To see more HR and compensation related templates, click here.