Cost per Hire (CPH) captures the total average expense to convert a candidate into a signed agent, including media spend, recruiter time, technology, background checks, onboarding, and incentives. CPH provides a bottom-line view of recruiting efficiency and informs budget scaling. For instance, $10,000 in total recruiting costs yielding 10 signed agents results in a CPH of $1,000. Comparing CPH to lifetime value (LTV) and time to productivity ensures the unit economics of your growth model are sustainable.
Formula: CPH = Total Recruiting Costs ÷ Number of Hires
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