Free Recruitment Cost Calculator: How Much Does Recruitment Really Cost?

Owen Daniels' free Recruitment Cost Calculator works out your direct recruitment costs and cost per hire over 12 months, then compares them with the UK benchmark. It takes two minutes, with no sign-up.

Try the free Recruitment Cost Calculator →

How do you calculate cost per hire?

Divide your total recruitment costs by the number of hires over 12 months. Include agency fees, advertising, job boards, LinkedIn and your ATS.

For example, a business makes 40 hires a year at an average salary of £45,000, with half through agencies at a 20% fee. Agency fees come to £180,000, plus £25,000 on job boards, advertising and its ATS. That's £205,000 in total, or £5,125 per hire.

What is the average cost per hire in the UK?

The UK private-sector median is £2,000 for most roles and £3,000 for senior managers and directors, according to the CIPD. STEM employers who rely on agencies often pay far more.

What drives recruitment costs up?

• Agency fees: charged as a percentage of first-year salary, and usually the biggest cost.
• Job boards, LinkedIn and ATS: small on their own, but significant together.
• Staff turnover: every leaver is another role to recruit.

How can you reduce your cost per hire?

• Hire more roles directly through your careers page and advertising.
• Agree consistent rates through a preferred suppliers list or one managed partner.
• Keep your people for longer.

Owen Daniels delivers an average 22% cost saving for our clients. Stuart Turner saved 43.9% through our RPO solution. Book a consultation to find out what you could save.

FAQs

Is there a free recruitment cost calculator?

Yes. Owen Daniels' free Recruitment Cost Calculator works out your cost per hire in two minutes and compares it with the UK benchmark. No sign-up is needed.

How much do recruitment agencies charge?

Agencies usually charge a percentage of the candidate's first-year salary for a permanent placement. The rate depends on the role, its seniority and your agreement.

Does the calculator save my answers?

No. Your results are worked out in your browser, and your figures aren't stored or shared.