Hiring an engineer really costs 30-50% of annual salary
Updated 26 March 2026
Recruiter fees are just the start. Add interview time, job boards, onboarding, and the cost of a vacant seat and the true cost of each engineering hire is much higher. Calculate the full picture.
Hire Details
Avg time to fill: 45 days
Base salary excluding bonus and equity
Days from job open to accepted offer
Total Cost Per Hire
$64k
Cost per day vacant: $520. Ramp-up time after hire: 2.5 months.
Recruiter Fee
$23k
18% of salary
Vacancy Cost
$29k
55 days x $520/day
Job Board Costs
$0
Ad postings and promotion
Interview Time Cost
$1k
4 interviewers x 4 hours
Onboarding Cost
$10k
First 90 days investment
Cost Breakdown
Every day the seat is empty costs $520
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Get a Free Hiring AuditEngineering Hiring Cost FAQ
How much does it cost to hire a software engineer?
The total cost of hiring a software engineer ranges from $30,000 to $120,000+ depending on seniority, location, and hiring method. When you add up recruiter fees, job boards, interview time, onboarding, and vacancy cost, the total is typically 30-50% of annual salary.
What is the average recruiter fee for engineers?
External recruiter fees for engineers are typically 15-25% of first-year salary, rising to 20-25% for senior, staff, and principal engineers. For a $150k engineer, that is $22,500 to $37,500 in recruiter fees alone.
How long does it take to hire a senior engineer?
Hiring a senior engineer typically takes 60-75 days from job open to accepted offer. At a fully-loaded daily rate of $600-900/day, that vacancy costs $36,000-$67,500 in lost output before you have even started onboarding.
Is it cheaper to use a recruiter or hire direct?
Direct sourcing via LinkedIn or referrals saves the 15-25% recruiter fee but typically increases time-to-fill by 20-40 days. The vacancy cost of those extra days often offsets the saving for senior roles. For junior roles, direct hiring usually wins.
What is the cost of interview time in engineering hiring?
A typical engineering interview process involves 4 interviewers spending 4 hours each - that is 16 person-hours of fully-loaded time. At $100-150/hr for senior engineers, interview time alone costs $1,600-$2,400 per candidate, before screening rounds.
How can I reduce engineering hiring costs?
The biggest levers are: building an employee referral programme (cuts recruiter fees), reducing time-to-fill with faster interview loops, improving job descriptions to reduce inbound noise, and maintaining a warm candidate pipeline so roles are not filled from cold.