How does the True Cost of Hiring Calculator work?

Employer NI (UK): 13.8% on earnings above 9,100 GBP Then: Pension contribution: 3% minimum employer contribution required by auto-enrolment Then: Recruiting: 3,000-8,000 GBP per hire (agency fees, job boards, interviewer time).

Can you give an example of how to use the True Cost of Hiring Calculator?

Example: Input 60,000 GBP salary, 20% benefits, 5,000 GBP recruiting, 3,000 GBP training gives a result of True annual cost: 86,000 GBP - 43% above the base salary figure.

Is the True Cost of Hiring Calculator free to use?

Yes — completely free with no registration, download, or subscription required. All calculations happen instantly in your browser.

How accurate is the True Cost of Hiring Calculator?

Our True Cost of Hiring Calculator uses verified mathematical formulas and is accurate to multiple decimal places. Results are calculated in real-time using the same methods used by professionals.

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True Cost of Hiring Calculator

Annual salary ($)

Benefits (% of salary)

Recruiting cost ($)

Training cost ($)

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.

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Pro Tip

When comparing contractor vs employee cost, always include the full employment cost - not just salary - to get a fair comparison.

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Did You Know?

The cost to replace an employee is estimated at 50-200% of their annual salary (SHRM), making retention one of the highest-ROI business investments.

References

›True cost of an employee — SHRM
›Employer NI — GOV.UK

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