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Recruitment cost is the total amount spent to recruit a person starting from the job posting to joining the employer. In other words, it can also be termed as cost per recruitment or placed candidate. The analysis of recruitment cost is necessary for profit analysis of an organization or a company. Most of the recruiters are not conscious about this matter, and that is why they can not figure out whether their recruitment was effective or not. Successive progress of an organization does not only depend on its production or service benefit but also on its recruitment benefits.

To calculate the total profit amount of a company it is necessary to adjust recruitment costs, and that is why it becomes essential to calculate the total amount spent while recruiting. Recruitment cost per person is necessary to evaluate the effectiveness and individual profit gain for this company. By adopting a few steps it can be calculated.

Those steps are as follows:

- First of all, total amount spent on job advertisement needs to be calculated.
- If the recruitment is made via referrals or recruitment agencies then the amount spent for that purpose must be calculated.
- Amounts spent on logistic supports during recruitment interview or relocation expenses needs to be counted.
- After that interview panels and recruiters costs need to be counted.
- Finally, all those expenses need to be summed up which will give the total amount spent on the recruitment process.

The amount spent per recruitment or recruitment cost per person can be obtained by dividing the total expense with total number of active candidates.