Question

A company spent $10,000 in recruiting efforts, received 20 applicants, and hired 10 people. What was the cost per hire?

a) $500
b) $1,000
c) $2,000
d) $5,000

Answer 1

The cost per hire for the company is $1,000, obtained by dividing the total recruitment cost of $10,000 by the number of hires, which is 10.

Step-by-step explanation:

The question involves calculating the cost per hire for a company that embarked on recruitment efforts. The company spent $10,000 on recruiting and successfully hired 10 people out of 20 applicants. To find the cost per hire, one would divide the total recruitment expenses by the number of people hired. The equation to figure out this metric is:

Total Cost of Recruiting ÷ Number of Hires = Cost per Hire

In this case:

$10,000 ÷ 10 = $1,000

Thus, the cost per hire would be $1,000. This is a critical calculation for companies to understand as it informs them of the efficiency and effectiveness of their recruitment processes. Knowing the cost per hire can help the company budget more accurately for future hiring and assess any changes needed to make the process more cost-effective.