Removing Recruitment Cost

The real recruitment cost is that of attrition or employee churn. Currently running at 15%, it is higher at lower paid salary levels (although the model below assumes a flat 15%). There are 3rd party costs associated with recruitment, but the bulk of the cost is incurred on lead in time – e.g. how long it takes the new employee to become as productive as the person replaced.

Given the white noise around the cost of attrition it is common to lose sight that the majority of the cost is at the lower paid levels – 75% of the cost is at the sub £44,500 salary level. 

By using TR Recruiter, you can cut your attrition by as much as 20%. In cold cash terms for every 1,000 employees your annual attrition costs of £2.8m are cut by £560,000, an ROI of over 35 times.

How these costs are calculated

To put the cost into context here are some stats from the Office of National Statistics
•     The median (full time) UK salary in 2022 was £33,000
•     In 2022 65% of workers earned less than £33,000
•     In 2022 80% of workers earned less than £44,500
•     In 2022 90% of workers earned less than £60,000
•     The average UK attrition rate in 2022 was 16.8%

Extrapolating these stats, the ‘average’ company incurs a total annual cost of employment (before NI and pension contribution) of £42.309m per thousand employees. This breaks down:


Using TR Recruiter, will reduce annual attrition by up to 20% making a net saving of £560,000/thousand employees generating an ROI of over 35 times.

Find out more

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