1. How much does it cost to hire an employee?

The average cost of hiring an employee in the US is $5,475 for non-executive roles, according to SHRM's 2025 Benchmarking Report. Executive hires average $35,879. These figures vary significantly by industry, company size, and role seniority. Technical roles such as senior engineers often carry CPH above $8,000 when interviewer time is included.

2. How much does it cost to hire employees at scale?

The cost to recruit an employee at scale depends on volume, process efficiency, and how much interviewer time is involved. High-volume hiring typically benefits from structured assessment tools and AI interviewing to reduce per-hire cost. Without these, hiring costs multiply directly with headcount.

3. What is the average cost to hire a new employee in tech?

For technical roles, the average cost of hiring an employee typically exceeds the general benchmark of $5,475. When engineering interview time is accounted for, a tech hire commonly costs $8,000 to $12,000 or more per role. The primary driver is internal cost: specifically, the hours senior engineers spend evaluating candidates who do not proceed to offer.

4. What does human resource costing include?

Human resource costing in recruitment includes all internal costs (recruiter salaries, hiring manager time, HR admin, ATS subscriptions, compliance processing) and all external costs (job board fees, agency fees, background checks, assessments, travel, relocation, signing bonuses). The SHRM/ANSI standard is the reference framework most organisations use.

5. What is the cost per hire formula?

The standard cost per hire formula is: CPH = (Total Internal Recruiting Costs + Total External Recruiting Costs) / Total Number of Hires. This is the formula standardised by SHRM and the American National Standards Institute (ANSI).

6. Does interviewer time count in cost per hire?

Yes. Hiring manager and interviewer time is classified as an internal recruitment cost under the SHRM/ANSI standard. Most organisations do not track it, which is why reported CPH figures are systematically lower than the real cost to hire. For technical roles with multiple interview rounds, interviewer time is often the single largest internal cost item.

7. How does AI video interviewing reduce cost per hire?

AI video interviewing reduces cost per hire by replacing the most expensive internal cost driver: live interviewer and hiring manager time. Instead of conducting deep interviews personally, your engineering team reviews scored reports and timestamped recordings. This typically reduces interviewer hours per role from 80+ hours to under 10, directly lowering the internal component of CPH.

How to Calculate Cost Per Hire: Step-by-Step Guide for HR Teams

Learn how to calculate cost per hire using the SHRM formula, spot hidden interviewer costs most teams miss, and reduce your real recruitment spend.

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