Question

Alice helped a sales manager place an ad on job boards and hire five new salespeople. She calculates that the total cost to recruit and select these employees was $200,000. What was the cost per hire for this recruiting effort?

Answer 1

Answer:

$40000

Explanation:

Total recruitment and selection cost of 5 new sales people = 200000

Selection and Recruitment Cost per hire =

Total recruitment & selection cost

            No. of staff hired

So, Selection and Recruitment Cost per hire (per 5 sales people) = 200000/5

= $40000

Answer 2

Answer:

$40,000

Explanation:

Cost per hire refers to the cost incurred on hiring a person or filling a vacant position in the organization. All costs related to filling the position such as advertisement cost, travelling cost or agency cost are included in cost per hire.

It is computed as total recruitment cost divided by number of people hired.

Here, total recruitment cost = $200,000

Number of salespersons hired = 5

Cost per hire = 200,000 / 5

                      = $40,000