Skip to content

Recruitment Cost Calculator

Recruitment Cost Calculator

Model the fully-loaded cost of hiring a senior engineer — agency fee, recruiter hours, panel time, postings, empty-seat cost, onboarding, and replacement risk — and compare four channels side by side.

Adobe Crypto.com Lacoste L'Occitane Lululemon Yusen Logistics Neopets Adobe Crypto.com Lacoste L'Occitane Lululemon Yusen Logistics Neopets Adobe Crypto.com Lacoste L'Occitane Lululemon Yusen Logistics Neopets Adobe Crypto.com Lacoste L'Occitane Lululemon Yusen Logistics Neopets

Drives agency fee + empty-seat opportunity cost

Their interview hours are the biggest hidden cost

Fully-loaded cost per hire

Channel comparison

Channel fee Recruiter time Panel time Postings & tools Empty seat Onboarding + risk

In-house hiring

$0 per hire

Recruitment agency (20%)

$0 per hire

Freelance / marketplace

$0 per hire

Second Talent

$0 per hire

Detailed cost breakdown (per hire)

Cost component In-house Agency Freelance Second Talent
Channel fee $0 $0 $0 $0
Recruiter time $0 $0 $0 $0
Panel interview time $0 $0 $0 $0
Job postings + ATS $0 $0 $0 $0
Empty-seat cost $0 $0 $0 $0
Onboarding + replacement risk $0 $0 $0 $0

Cost per hire

$0

via Second Talent

Total program cost

$0

for all hires

Saved vs agency

$0

at 20% commission

Saved vs in-house

$0

loaded internal cost

We help companies save $103,000+ per hire

28k USD

Median cost per senior engineer hire in the US (LinkedIn Talent)

20%

Typical agency commission on annual base salary

62 hrs

Panel interview hours consumed per senior hire

15%

Of tech hires do not make it past year one (SHRM)

Automate Workflows Build AI Agents Ship LLM Features Build RAG Pipelines Cut LLM Costs Tame AI Sprawl Build MVPs Scale Engineering Automate Workflows Build AI Agents Ship LLM Features Build RAG Pipelines Cut LLM Costs Tame AI Sprawl Build MVPs Scale Engineering
End DevOps Burnout Modernize Stack Hit Q4 Roadmap Cut Burn Rate Replace Agencies Extend Runway Build Without Borders Ship 3x Faster End DevOps Burnout Modernize Stack Hit Q4 Roadmap Cut Burn Rate Replace Agencies Extend Runway Build Without Borders Ship 3x Faster

Where the money actually goes

Most teams only track the agency fee. The calculator above adds the five hidden costs that make senior hires so expensive.

01

Channel fee

Agency commission at 15–25% of annual salary, a platform placement fee, or an engagement retainer. The only line most finance teams actually see — typically 35–50% of the total bill.

02

Recruiter time

Sourcing, scheduling, candidate management, reference checks, offer negotiation. 20–60 hours of burdened HR time per hire at roughly $65/hour fully loaded.

03

Panel interview time

Four engineers × four rounds × 1.5 hours × $120/hour burdened = $2,880 per hire, before debrief and coordination. Staff-level hires can push this past $6,000.

04

Job postings & tooling

LinkedIn Recruiter seat, Indeed sponsored posts, ATS allocation, candidate screening tools, assessment platforms. Usually $1,500–$2,500 per hire for in-house channels.

05

Empty-seat opportunity cost

Every day the role sits open, you lose the value that engineer would have delivered — about 1.5× loaded salary per working day. On a 60-day search for a $160k role that is $55,000 gone.

06

Onboarding + replacement risk

Equipment, software licenses, manager ramp-up hours, and the risk-adjusted cost of candidates that leave inside year one. Second Talent replaces on our dime if it is not working, so this line collapses.

The hidden cost at each stage

A senior hire touches six stages, and every one accumulates dollars. The calculator sums them in order.

1

Sourcing

Job ads, LinkedIn Recruiter searches, referral campaigns. In-house teams burn 15–25 recruiter hours per hire before a single candidate lands on the phone.

2

Screening

Resume review, phone screens, take-home tests. Drop-off is 60–80%, so for every hire you are funding 8–12 full screens — most of which end in "no".

3

Panel interviews

The most expensive stage by far. Four engineers × four rounds of 90-minute loops plus a 30-minute debrief at burdened engineering rates adds up fast.

4

Offer + references

Two weeks of negotiation, reference checks, and approvals. Lose the candidate here and you restart the whole funnel — that is what the replacement-risk line models.

5

Empty seat

Between signed offer and day one, the role still does not ship. For every extra week it stays open, budget roughly one week of fully-loaded salary in foregone value.

6

Onboarding + ramp

Equipment, manager time, pair programming. Your new senior is not yet productive — a 90-day ramp is the industry norm, and a ~15% chance exists you restart the cycle inside a year.

Recruitment cost questions, answered

Why is Second Talent so much cheaper than a traditional agency?
A recruitment agency charges a percentage of the hire's annual salary — typically 20% of $160k = $32,000 for a single placement. Second Talent runs on a flat engagement model that is a fraction of that, and we eliminate the largest hidden cost: panel interview hours, because our shortlist is pre-vetted.
What is a reasonable cost per senior engineer hire?
LinkedIn Talent Solutions puts the US median at $28,000 per senior engineer when you add up direct fees, internal hours, tooling, and the empty-seat cost. Teams that use agencies land at $40–$55k. Teams using Second Talent typically land at $10–$15k, including the daily-rate empty-seat savings from faster placement.
How did you derive the "panel interview" number?
We assume rounds × engineers-on-panel × 2 hours (interview + debrief) plus 5 hours of coordination, all at a burdened engineering rate of $120/hour. Staff-level hires apply a 1.5× multiplier because those loops add extra rounds and senior interviewers. The calculator lets you tune the rounds and panel size directly.
What is the "empty-seat" cost, exactly?
Every day a senior engineering seat stays open, you lose the value that engineer would have shipped. We model it at 1.5× loaded salary on an annualised basis, spread across 260 working days — a conservative estimate used by most hiring-ROI calculators. The calculator multiplies it by the typical days-to-hire for each channel.
Why is in-house hiring more expensive than using an agency in your model?
Because of two things: (1) your recruiter carries 60+ hours of process per hire vs 20 hours when the agency handles sourcing, and (2) in-house searches typically run 30–50% longer, so the empty-seat cost balloons. The agency fee is visible; the in-house cost is spread across payroll lines nobody adds up.
Do you charge the candidate's annual salary as a percentage?
No. Second Talent runs a flat engagement model, not a percentage-of-salary commission. You pay a single transparent rate per seat per month, and we replace on our cost if the hire is not working out. No 20% surprise invoice.

What this calculator helps you understand

01

Six-component cost breakdown per hire across in-house, agency, freelance and Second Talent

02

Side-by-side stacked-bar comparison showing exactly where the money goes in each channel

03

Fully-loaded per-hire and total program cost, including the empty-seat opportunity cost

04

Savings vs a 20% agency commission and vs your loaded internal hiring cost

Get a real quote in 24 hours.

Send us your role and budget and our team will reply with a tailored estimate plus 6 vetted candidates.

Get Your Quote
WhatsApp