Hiring Cost Calculator
Calculate the true cost of hiring: recruitment, onboarding, equipment, manager time, and productivity ramp.
FAQ
What's "ramp gap"?
New hires typically reach ~60% of full productivity during ramp. The ramp gap is the value the role would have produced if it were fully staffed, minus what the new hire actually produces. It's real even though no cash leaves the business.
Why include manager time?
A manager spending 5 hrs/wk for 3 months onboarding a new hire is 65 hrs of their time. At $150/hr loaded, that's ~$10k. It's usually invisible but real.
Is 20% agency fee realistic?
Yes. Tech contingency agencies typically charge 20-30% of first-year base. Retained search is often 30-33%. In-house teams have lower per-hire cost but higher fixed cost.
What about turnover cost?
Industry rule of thumb: turnover costs 1.5x to 2x annual salary at the high end (for engineers). Reducing turnover by 10% on a 50-person team often pays for the whole HR function.
Disclaimer. Estimates based on common industry figures. Actual costs vary by industry, geography, and company size. In-house recruiter teams have fixed costs not modeled here.