Hiring Cost Benchmarks by Industry

Recruitment is one of the most significant investments businesses make—but how much does it really cost to hire a new employee? And how do those costs differ across industries? Understanding hiring cost benchmarks can help you optimize your recruitment strategy, control expenses, and ultimately, make smarter hiring decisions.

Whether you're a startup scaling your team or an enterprise evaluating your talent acquisition ROI, this guide breaks down what you need to know about hiring cost benchmarks by industry—complete with real numbers, insights, and a framework to reduce hiring costs without compromising quality.

What Are Hiring Cost Benchmarks?

Hiring cost benchmarks refer to the average amount companies spend to recruit and onboard a new employee.

This includes both internal and external costs, such as:

• Job advertising
• Recruiter fees or in-house recruiting team salaries
• Interview time (man-hours)
• Background checks and testing
• Technology and tools (ATS, job boards)
• Relocation expenses
• Onboarding and training

According to the Society for Human Resource Management (SHRM), the average cost-per-hire is around $4,700, but this can vary widely by industry, seniority level, and location【source: https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/default.aspx】.

Why Hiring Costs Vary by Industry

Hiring costs aren't one-size-fits-all. Here's why benchmarks shift across different sectors:

• Talent scarcity: Niche roles in tech or healthcare are harder (and more expensive) to fill.
• Time-to-hire: The longer the recruitment process, the higher the cost.
• Turnover rates: Industries with high churn (like retail) may spend less per hire but more overall due to frequent hiring.
• Regulatory complexity: Background checks and certifications (common in finance or healthcare) add costs.
• Geographic dispersion: Global and remote hiring introduces complexity and logistics.

Hiring Cost Benchmarks by Industry

Let’s take a closer look at typical cost-per-hire numbers in 2025 across major sectors.

🖥️ Technology

• Average Cost-Per-Hire: $7,500–$20,000
• Key Drivers:
  • Competitive job market for software engineers and data scientists
  • Hefty recruiter fees for specialized roles
  • Long interview pipelines and coding assessments

• Optimization Tip: Partnering with global remote hiring platforms like Riemote can significantly reduce overhead by tapping into high-quality talent in emerging markets.

🏥 Healthcare

• Average Cost-Per-Hire: $6,000–$12,000
• Key Drivers:
  • Licensing, background checks, and certifications
  • Scarcity of skilled nurses and specialists
  • High urgency and turnover

• Optimization Tip: Streamlined credentialing and onboarding systems can reduce lag and cost.

🏦 Finance and Insurance

• Average Cost-Per-Hire: $5,000–$10,000
• Key Drivers:
  • Stringent vetting processes
  • Need for trust and compliance

• Optimization Tip: Leveraging internal mobility and referrals reduces acquisition cost while improving cultural fit.

🛍️ Retail and Hospitality

• Average Cost-Per-Hire: $800–$2,500
• Key Drivers:
  • High turnover, frequent seasonal hiring
  • Lower complexity in role requirements

• Optimization Tip: Bulk hiring and automated screening tools save time and cost.

🏗️ Manufacturing

• Average Cost-Per-Hire: $3,000–$5,500
• Key Drivers:
  • Skills mismatch in technical trades
  • Physical job site onboarding logistics

• Optimization Tip: Investing in local talent pipelines and apprenticeships can offset hiring expenses over time.

The Hidden Costs You Shouldn’t Ignore

While direct hiring costs are easier to quantify, indirect costs can significantly impact your budget:

• Productivity loss: Teams operating understaffed or waiting for training.
• Bad hires: SHRM estimates the cost of a bad hire can be up to 5x the position’s salary.
• Burnout: Overworked employees covering gaps can increase attrition.

💡 Pro Tip: Use cost-per-hire + quality-of-hire as a composite metric to evaluate the efficiency of your hiring process.

How to Reduce Hiring Costs Without Sacrificing Quality

Here are proven tactics to bring your hiring costs down without cutting corners:

1. Embrace Remote-First Hiring

Remote hiring reduces relocation, facilities, and geographic salary premiums. Platforms like Riemote help you find top-tier talent at a fraction of traditional hiring costs.

2. Optimize Your Recruitment Funnel

• Automate resume screening with AI tools
• Shorten interview cycles by using structured panels
• Track funnel conversion metrics to identify drop-off points

3. Tap into Referrals and Internal Talent

Employees hired through referrals typically:

• Cost 30–50% less to hire
• Stay longer
• Perform better

4. Invest in Employer Branding

According to LinkedIn’s Talent Trends Report, a strong employer brand can reduce cost-per-hire by up to 50%.

5. Outsource Smartly

Managed talent services like Riemote combine recruitment, compliance, and payroll—saving time, money, and administrative headaches.

How to Calculate Your Hiring Cost Benchmark

Use this formula to calculate your cost-per-hire:

Cost-Per-Hire = (Internal Costs + External Costs) ÷ Number of Hires

Break it down by department or role to uncover inefficiencies. Benchmark it against industry averages (like those above) to see where you stand.

Conclusion: Hiring Smarter Starts with Benchmarking

Understanding hiring cost benchmarks by industry gives you the clarity to make informed talent decisions. Whether you're hiring engineers in Berlin or customer support reps in Manila, costs can vary dramatically—but so can the impact of each hire.

Use benchmarks not just to control costs, but to improve speed, quality, and scalability.

Ready to scale your team with top global talent—without breaking the bank? Visit Riemote to see how we help businesses cut hiring costs by up to 60% through remote-first hiring solutions.

FAQs: Hiring Cost Benchmarks

1. What are hiring cost benchmarks?

Hiring cost benchmarks are average costs organizations incur to hire a new employee. They include internal and external recruiting costs, and vary by industry, role, and geography.

2. How much does it cost to hire someone in tech?

In tech, hiring can cost between $7,500 and $20,000, depending on the complexity of the role and hiring methods used.

3. Why are hiring costs higher in healthcare and finance?

Regulatory compliance, background checks, certifications, and a limited talent pool drive up hiring costs in these sectors.

4. How can I reduce my cost-per-hire?

You can reduce costs by streamlining recruitment processes, leveraging referrals, investing in employer branding, and outsourcing through platforms like Riemote.

5. Is remote hiring cheaper than local hiring?

Yes, remote hiring often results in lower overhead, broader talent access, and faster time-to-hire—especially when facilitated through platforms like Riemote.