For HR directors and finance teams in the United States and United Kingdom, understanding the real cost of hiring is essential for budget planning. Whether you're using a recruitment agency or managing the process internally, the costs can vary significantly.
This free calculator helps you compare the costs of each approach, factoring in fees, time, and other expenses. Knowing the true cost of hiring can help you make better decisions and allocate resources more effectively.
How the calculation works
This calculator uses a standard formula to estimate the total cost of hiring via an agency and through internal hiring. It accounts for:
- Agency placement fee (typically a percentage of the hired candidate’s first-year salary, e.g. 15-25%)
- Internal hiring costs including HR time (estimated hourly rate multiplied by hours spent), job posting fees, interviewing costs, and onboarding
- Time to hire in both scenarios
For the US and UK, we apply average agency fees and internal hiring hours based on industry benchmarks to give you an apples-to-apples cost comparison. The final output gives you the total cost and time for both options, helping you determine the more cost-effective path.
How to use this calculator
- Enter the estimated base salary of the position.
- Select the hiring location (US or UK) to apply region-specific agency fees.
- Input the internal HR hourly rate and estimated time spent on the hiring process.
- Include any additional internal costs like job board fees or recruitment software costs.
- Review the comparison of total costs and time for both agency and internal hiring.