Recruiting Cost Calculator
Compare the real cost of hiring software engineers across different methods. Free, instant, no signup.
Annual cost comparison
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| Method | Cost per hire | Annual cost | Notes |
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Get startedFrequently asked questions
What is the average cost per hire for software engineers?
The average cost per hire for software engineers ranges from $4,000 to $50,000 depending on the method. Agency recruiters typically charge 20-25% of first-year salary ($35,000-$50,000 for a senior engineer). LinkedIn Recruiter costs approximately $12,000 per seat per year. In-house sourcing costs $150,000+ per year for a dedicated sourcer. Contribution-based sourcing tools like Riem.ai start at $588 per year ($49/month).
How much does a recruiting agency charge per placement?
Recruiting agencies typically charge 20-25% of a candidate's first-year salary. For a software engineer earning $175,000, that's $35,000 to $43,750 per placement. Some specialized agencies charge even more for hard-to-fill roles. Retained search firms may charge 25-33% with an upfront retainer.
Is LinkedIn Recruiter worth $1,000 per month?
LinkedIn Recruiter costs approximately $1,000 per seat per month ($12,000 per year). For engineering-specific hiring, the ROI depends on your volume. If you hire across multiple functions, it can be cost-effective. For teams hiring primarily engineers, specialized tools like Riem.ai ($49-$399/month) provide better signal-to-noise at a fraction of the cost.
How do you calculate recruiting ROI?
Recruiting ROI = (Value of hires - Total recruiting costs) / Total recruiting costs x 100. Total costs include tool subscriptions, agency fees, sourcer salaries, job boards, and hiring manager time. Factor in time-to-fill (longer vacancies cost more in lost productivity) and quality of hire (measured by retention and performance).
What is the cheapest way to hire software engineers?
The most cost-effective methods: (1) Employee referrals, lowest cost per hire but limited scale. (2) Contribution-based sourcing tools like Riem.ai ($49-$399/month). (3) Direct sourcing through GitHub and open source communities (free but very time-intensive). (4) Job boards ($200-$500 per posting). Agency recruiters ($35,000+ per placement) are the most expensive option.
How much should a startup budget for engineering hiring?
Startups should budget 15-25% of an engineering hire's first-year salary when using agencies, or $5,000-$15,000 per hire with a mix of tools and direct sourcing. For a Series A startup hiring 5 engineers, a reasonable annual budget is $25,000-$75,000. Using tools like Riem.ai ($588-$4,788/year) instead of agencies reduces this significantly.