UK employer guide

How recruitment costs build up

When you hire someone, the salary is only one part of the total cost. Recruiting and starting a new person often adds several more budget lines.

In short

Recruitment cost can include adverts, recruiter fees, interviews, onboarding, equipment and the ongoing payroll cost once the person starts.

Common parts of the bill

Some employers use an external recruiter, some advertise directly and some do both. Once the person is hired, onboarding, training and equipment can add to the total.

Why it is useful to budget separately

If you only look at the salary, the hire can appear cheaper than it really is in year one. Separating recruitment cost helps you compare hires more realistically and manage cash flow.

What is not included

The calculator does not model the apprenticeship levy, holiday accrual, benefits in kind, office overheads or sector-specific rules. Those can be added to a wider employer budget later.

Use the recruitment cost calculator for a quick planning estimate. You can also compare the wider hire cost with the cost of hiring calculator.