Recruiting spend by source
- Total spend
- AED 74,000
- Total hires
- 15
- Blended cost per hire
- AED 4,933
- Lowest cost per hire
- Job boards & ads
- Highest cost per hire
- Recruitment agencies
AED 2,000
AED 18,000
Blended cost per hireAED4,933
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Source of Hire ROI Calculator
Which hiring channel gives you the cheapest hires and the best return?
Enter what you spent and how many hires each channel produced — job boards, agencies, referrals, social and direct. You get cost per hire, share of hires and ROI for each source.
How source-of-hire ROI is calculated
Cost per hire for a source = spend on that source ÷ hires from it. Blended cost per hire = total spend ÷ total hires. If you enter a value per hire, ROI for each source = (hires × value per hire − spend) ÷ spend. Sources with hires but no spend show 'No spend' — they are free channels, so ROI isn't meaningful.
- Source of hire
- The channel through which a hired candidate first applied or was found.
- Value per hire
- Your own figure for what one successful hire is worth to the business.
Source-of-hire example
One illustrative company over a quarter (value per hire AED 30,000), worked out with the calculator's maths.
| Source | Hires | Share | Cost per hire | ROI |
|---|---|---|---|---|
| Job boards & ads | 6 hires | 40% of hires | AED 2,000 | 1,400% |
| Recruitment agencies | 3 hires | 20% of hires | AED 18,000 | 67% |
| Employee referrals | 4 hires | 27% of hires | AED 2,000 | 1,400% |
| Careers site & direct | 2 hires | 13% of hires | No spend | — |
Illustrative figures only — not benchmarks.
Before you move budget
- A few hires per channel is a small sample — look at several quarters.
- Cost isn't everything: compare retention and quality by source before cutting a channel.
- Include your own team's time on free channels if you want a full-cost view.
Frequently asked questions
How do you calculate cost per hire by source?
For each channel, divide what you spent on it by the hires it produced in the same period. If job boards cost AED 12,000 and brought 6 hires, they cost AED 2,000 per hire. Spend should include ad budgets, agency fees, referral bonuses and paid sourcing tools for that channel.
How is recruiting ROI calculated?
ROI = (hires × value per hire − spend) ÷ spend × 100. You decide the value of a hire — for example the first-year gross profit a salesperson brings in, or a fixed figure you use for all roles. Without a value, compare channels on cost per hire and share of hires instead.
Which hiring source is best?
The one with the lowest cost per hire for the quality you need. Referrals and direct applicants are often cheapest, agencies often fastest for senior or scarce roles. Check your own numbers — and look at retention and quality of hire by source too, not just cost.
How do I track which source a hire came from?
Ask in the application form and record it in your ATS or spreadsheet when the candidate applies, not when they're hired. Use one 'first source' rule: if a candidate saw your job ad and was later referred, decide which wins and apply it every time.
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