A £60,000 salary is a £129,545 revenue target

True Cost of a Hire

Employer National Insurance, the pension and the software land on top of every salary. Then the real number: the revenue that has to arrive to pay for it.

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True Cost of a Hire

Not the salary. The run rate, the first year, and the revenue that has to arrive to pay for both.

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Agency fee or the time cost of hiring yourselves.
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From the Unit Economics Calculator. What each pound of revenue leaves after variable costs.

What the salary hides

Employer National Insurance at 15 per cent above £5,000 and the 3 per cent minimum pension go on top of every salary before anything else does.

The first year also carries the recruitment cost and the kit, which is why year one is the expensive one even before the slow months while they learn the job.

The number that decides the hire is the last one: the revenue that has to arrive to cover them at your margin. A hire is a revenue target wearing a job title.

Take the workbook

The same build-up in Excel, with the monthly run rate and the revenue cover worked at your own margin.

Download the workbook Excel, no signup

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