How to Calculate Fully Loaded Cost Per Hire

Hiring the right talent is one of the most strategic investments a company can make—but understanding what it truly costs to bring someone new onboard goes far beyond just their salary. Enter the Fully Loaded Cost Per Hire—a powerful metric that gives HR and finance teams a complete picture of recruitment expenses.

If you're trying to calculate fully loaded cost accurately, this guide will break down everything you need to know—from formula to real-world application. Plus, we’ll share how outsourcing partners like Riemote can streamline your hiring and drastically reduce overhead.

What Is the Fully Loaded Cost Per Hire?

The fully loaded cost per hire represents the total financial burden of acquiring a new employee. Unlike traditional metrics that focus only on recruiter fees or job ads, this calculation includes every cost directly and indirectly tied to hiring:

• Recruitment marketing
• Interview time (internal hours)
• Background checks
• Technology tools
• Onboarding and training
• Benefits setup
• Workspace provisioning

Why does this matter? Because hidden costs often inflate your actual spend—sometimes up to 2x the expected amount.

Why You Need to Calculate Fully Loaded Cost

Tracking only base recruiting fees gives a skewed view of efficiency and ROI. Knowing the fully loaded cost per hire helps with:

• Budget forecasting: Allocate resources more strategically.
• Recruitment benchmarking: Compare performance across departments or periods.
• Identifying savings opportunities: Spot inefficiencies and optimize hiring workflows.
• Justifying outsourcing or automation investments: Support data-driven decisions.

For fast-scaling startups or remote-first companies, especially, these insights are gold.

The Formula to Calculate Fully Loaded Cost

Let’s break down a practical formula to calculate fully loaded cost per hire:

🎯 Basic Formula:

Fully Loaded Cost per Hire =
(Total Internal Costs + Total External Costs + Onboarding Costs + Technology + Opportunity Costs)
÷
Number of New Hires

🔍 Here’s what to include:

1. Internal Costs

• Recruiter salaries and bonuses
• Hiring manager time (hourly rate × time spent)
• Referral bonuses

2. External Costs

• Job board fees
• Advertising & marketing
• Recruitment agency fees
• Background checks or pre-employment testing

3. Onboarding Costs

• Training sessions
• Orientation materials
• Buddy programs
• HR admin setup time

4. Technology Costs

• ATS (Applicant Tracking System)
• Assessment tools
• Communication platforms (Zoom, Slack, etc.)

5. Opportunity Costs

• Lost productivity during vacancies
• Time spent interviewing instead of performing core work

Example: Real-World Calculation

Let’s say you hired 10 new employees in Q1. Here's a sample breakdown:

Fully Loaded Cost per Hire = $60,000 ÷ 10 = $6,000

That’s your true cost—not the $1,500 fee from your recruiter alone.

Key Tips to Lower Your Cost Per Hire

Even as your company grows, there are smart strategies to reduce this figure:

✅ Automate Where Possible

Use tools like Greenhouse or Workable to automate candidate screening and onboarding.

✅ Use Data-Driven Recruiting

Rely on hiring metrics to identify bottlenecks and drop-off points in your funnel.

✅ Leverage Global Talent

Remote hiring not only expands your candidate pool but also reduces office provisioning and regional wage inflation. Riemote helps you access pre-vetted global professionals—without the traditional overhead.

✅ Outsource Smartly

Instead of a bloated in-house team, partner with firms like Riemote to gain access to vetted talent pools, seamless hiring support, and transparent pricing models.

Riemote’s Role in Reducing Fully Loaded Cost

At Riemote, we don’t just connect you with remote-ready talent—we also handle:

• End-to-end vetting
• Skills-based assessments
• HR & compliance
• Contract setup
• Payroll & tax handling

This allows you to calculate fully loaded cost with clarity—and keep it low.

💡 Companies working with Riemote have reported up to 40% savings compared to traditional hiring models.

Helpful External Resources

• U.S. Bureau of Labor Statistics: Employer Costs for Employee Compensation
• SHRM’s Real Cost of Recruitment Guide

Final Thoughts

Understanding how to calculate fully loaded cost per hire is crucial for any business leader, HR professional, or startup founder. It's not just a finance exercise—it's a strategic lens that reveals how efficient and scalable your hiring engine truly is.

The right partner can make all the difference. If you're ready to hire smarter and leaner, explore what Riemote can do for your business.

FAQs: Calculate Fully Loaded Cost

1. What’s the difference between base cost and fully loaded cost?

Base cost includes only direct expenses (e.g., recruiter fees), while fully loaded cost includes onboarding, tools, time, and indirect costs.

2. How often should I calculate fully loaded cost?

Ideally quarterly or semi-annually, especially during periods of rapid growth or organizational change.

3. Is it different for remote hires?

Yes—remote hiring often reduces provisioning and real estate costs, lowering the fully loaded cost per hire.

4. Can outsourcing help reduce fully loaded cost?

Absolutely. Strategic partners like Riemote can reduce costs by streamlining sourcing, vetting, and onboarding.

5. What’s a “good” fully loaded cost per hire?

This varies by industry. Tech startups might range from $3,000–$8,000; enterprise roles can exceed $20,000.