Recruiting Cost Ratio:

The recruiting cost ratio is simply a number used to describe how much money HR spends on recruiting new employees. This is a simple calculation:

RCR = (Total Staffing Costs / Total Compensation Recruited) x 100*
Total staffing costs include recruiter travel, events, cost for job fairs, paperwork, supplies, recruiter salaries, bonus’ offered to new hires, and any other expenses your department needs in order to function properly.
Total compensation recruited refers to new hire employee salaries or hourly wages for that year.
If you add these numbers and end up with a low percentage, then you are on the right track to becoming a more efficient department. If the percentage is higher than if should be, then you should look at where the department is spending money and the types of positions that were filled in order to justify costs or in order to find ways to cut costs in the future.