How to Calculate True Cost of Hiring
What is True Cost of Hiring?
The true cost of hiring an employee significantly exceeds base salary - typically 1.25-1.4x salary when accounting for employer taxes, benefits, recruiting costs, training, and overhead.
Step-by-Step Guide
- 1Employer NI (UK): 13.8% on earnings above 9,100 GBP
- 2Pension contribution: 3% minimum employer contribution required by auto-enrolment
- 3Recruiting: 3,000-8,000 GBP per hire (agency fees, job boards, interviewer time)
Worked Examples
Frequently Asked Questions
What is Hiring True Cost?
The true cost of hiring an employee significantly exceeds base salary - typically 1. 25-1
How accurate is the Hiring True Cost calculator?
The calculator uses the standard published formula for hiring true cost. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.
What units does the Hiring True Cost calculator use?
This calculator works with inches, percentages. You can enter values in the units shown — the calculator handles all conversions internally.
What formula does the Hiring True Cost calculator use?
The calculator applies the standard formula for this type of calculation. See the 'How It Works' steps above for the detailed formula breakdown.
Ready to calculate? Try the free True Cost of Hiring Calculator
Try it yourself →