How To Calculate Cost per Hire in ProfitBooks | Arithmix

Calculating the cost per hire is an essential metric for any business. It helps you understand how much it costs to bring a new employee on board. This metric is particularly useful for small businesses that have limited resources and need to make every penny count. In this article, we will discuss what cost per hire is, when it is valuable to calculate it, and how to calculate it using ProfitBooks.

What Is Cost per Hire?

Cost per hire is a metric that measures the total cost of hiring a new employee. This includes all the expenses associated with recruiting, interviewing, and onboarding a new employee. The cost per hire can vary depending on the industry, the position, and the location of the business. It is essential to calculate the cost per hire accurately to understand the true cost of bringing a new employee on board.

There are several components that make up the cost per hire. These include advertising costs, recruiter fees, travel expenses, background checks, and any other expenses associated with the hiring process. It is essential to include all of these costs when calculating the cost per hire to get an accurate picture of the total cost.

When Is It Valuable To Calculate Cost per Hire?

Calculating the cost per hire is valuable for several reasons. Firstly, it helps you understand the true cost of bringing a new employee on board. This can help you make better decisions about your hiring process and identify areas where you can save money. Secondly, it can help you compare the cost of hiring different employees or recruiting from different sources. This can help you identify the most cost-effective way to hire new employees.

Finally, calculating the cost per hire can help you identify areas where you can improve your hiring process. For example, if you notice that your advertising costs are high, you may want to explore other advertising channels or adjust your advertising strategy to reduce costs.

How to Calculate Cost per Hire in ProfitBooks

ProfitBooks is a cloud-based accounting software that can help you calculate your cost per hire. Here are the steps to follow:

1. Identify all the expenses associated with the hiring process, including advertising costs, recruiter fees, travel expenses, background checks, and any other expenses.
2. Record all of these expenses in ProfitBooks under the appropriate expense categories.
3. Calculate the total cost of hiring by adding up all of the expenses.
4. Divide the total cost of hiring by the number of new employees hired during the period to get the cost per hire.

By following these steps, you can accurately calculate your cost per hire using ProfitBooks. This can help you make better decisions about your hiring process and identify areas where you can save money.

Conclusion

Calculating the cost per hire is an essential metric for any business. It helps you understand the true cost of bringing a new employee on board and can help you make better decisions about your hiring process. By using ProfitBooks, you can accurately calculate your cost per hire and identify areas where you can save money. So, start calculating your cost per hire today and take your business to the next level!

How Do You Calculate Cost per Hire in ProfitBooks

ProfitBooks itself isn’t naturally geared towards letting you calculate complex metrics like Cost per Hire. As an alternative, teams typically use products like Arithmix to import data from ProfitBooks and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like ProfitBooks, combine it with data from other systems, and create calculations like Cost per Hire.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating Cost per Hire in Arithmix

Calculating metrics like Cost per Hire is simple in Arithmix. Once you've created your free account, you’ll be able to import your ProfitBooks data, and use it to create natural language formulas for metrics like Cost per Hire.

Arithmix is designed to give you the power to build any calculations you want on top of your ProfitBooks data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.