Cost Per Hire for College Grads is $5,134

One of the key metrics for employers large and small when hiring new employees is their cost per hire or, as some would express it, their cost of recruiting. A new survey by the National Association of Colleges and Employers (NACE) indicates that the average cost of hire for a new college graduate during the 2011-12 recruiting season was $5,134.

The study indicates that the average cost-per-hire is generally lower for larger companies. That makes sense because they can spread those costs. For example, a large company may post one ad but hire five people from it. Or they may visit three schools and hire 10 people. A small company would pay the same per ad and the same for the on-campus school visits but only hire one person. Economies of scale give that larger employer an advantage when it comes to their costs per hire.

The costs per hire by employer size was:

• 500 or fewer employees = $7,645.28
• 501 – 1,000 = $6,634.85
• 1,001 – 2,500 = $6,512.14
• 2,501 – 5,000 = $11,365.37
• 5,001 – 10,000 = $3,181.87
• 10,001 – 20,000 = $3,737.47
• More than 20,000 = $2,885.68

Source: 2012 Recruiting Benchmarks Survey, National Association of Colleges and Employers