The full hidden cost stack
Beyond salary you're paying for:
- Employer NICs at 13.8%
- Pension auto-enrolment at 3% minimum
- Software seats: £50–£100/month
- Equipment + workspace: £1,200–£2,500/yr
- Recruitment fee or time: £2k–£8k amortised
- Training + ramp-up time: £3k–£8k year-1
- Holiday + sick day cover: 8–10% of salary
- Attrition replacement risk
- Management time: 2–4 hrs/wk per direct report