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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.
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:
Why does this matter? Because hidden costs often inflate your actual spend—sometimes up to 2x the expected amount.
Tracking only base recruiting fees gives a skewed view of efficiency and ROI. Knowing the fully loaded cost per hire helps with:
For fast-scaling startups or remote-first companies, especially, these insights are gold.
Let’s break down a practical formula to calculate fully loaded cost per hire:
Fully Loaded Cost per Hire =
(Total Internal Costs + Total External Costs + Onboarding Costs + Technology + Opportunity Costs)
÷
Number of New Hires
1. Internal Costs
2. External Costs
3. Onboarding Costs
4. Technology Costs
5. Opportunity Costs
Let’s say you hired 10 new employees in Q1. Here's a sample breakdown:
| Cost Type | Amount |
|---|---|
| Internal Salaries | $20,000 |
| External Agency Fees | $15,000 |
| Job Ads | $5,000 |
| Onboarding Training | $7,000 |
| Software & Tools | $3,000 |
| Opportunity Costs | $10,000 |
| Total | $60,000 |
Fully Loaded Cost per Hire = $60,000 ÷ 10 = $6,000
That’s your true cost—not the $1,500 fee from your recruiter alone.
Even as your company grows, there are smart strategies to reduce this figure:
Use tools like Greenhouse or Workable to automate candidate screening and onboarding.
Rely on hiring metrics to identify bottlenecks and drop-off points in your funnel.
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.
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.
At Riemote, we don’t just connect you with remote-ready talent—we also handle:
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.
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.
Base cost includes only direct expenses (e.g., recruiter fees), while fully loaded cost includes onboarding, tools, time, and indirect costs.
Ideally quarterly or semi-annually, especially during periods of rapid growth or organizational change.
Yes—remote hiring often reduces provisioning and real estate costs, lowering the fully loaded cost per hire.
Absolutely. Strategic partners like Riemote can reduce costs by streamlining sourcing, vetting, and onboarding.
This varies by industry. Tech startups might range from $3,000–$8,000; enterprise roles can exceed $20,000.
