Question

When an organization adds up all the expenses for hiring five new engineers, including advertising costs, relocation costs, and interview costs, and divides the total by five, the organization gets the ______.

Answer 1

Answer:

Cost per hire

Explanation:

Cost per hire is the sum total of total costs incurred on hiring new recruits divided by no of new recruits.

Mathematically it is expressed as,

Cost per hire = $\frac{Internal\ Recruitment\ cost\ +\ external\ recruitment\ costs}{Number\ of\ new\ recruits}$

Cost per hire allocates all those expenses incurred in relation to hiring new recruits and calculating per head cost of hiring a new recruit.

The services which an organization avails from it's employees is then weighed against this cost that relates to each individual.