Glossary · Costs

Employer cost multiplier

An employer cost multiplier is the ratio of total compensation to wages: how many dollars an employer spends for each dollar of pay once benefits and payroll taxes are added. Multiply a salary by it to estimate fully loaded cost. In the U.S., the Bureau of Labor Statistics publishes the inputs every quarter.

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What it means in practice

The multiplier varies by occupation group. Professional and office roles carry different benefit costs from sales or service roles, so a single rule of thumb can overstate or understate the true cost. Our calculator uses the BLS Employer Costs for Employee Compensation figures for each role's group.

You can change the multiplier in the calculator to match your own benefits package. A richer health plan or a bigger retirement match pushes it up.

Then compare the result with a full-time Rekruuto hire in the same role, and read the cost report for the sources behind every figure.

How to use the multiplier

  • Start from the base salary you would offer a local hire for the role, not the average for the whole market.
  • Use the multiplier for that role's occupation group rather than one figure for every role.
  • Adjust it for your own benefits: health plan, retirement match, paid leave, and bonuses.
  • Add the costs it leaves out, such as recruiting fees, equipment, software seats, and management time.
  • Compare the fully loaded result with the full monthly price of the alternative, on a 12-month basis.
  • Fully loaded cost

    Fully loaded cost is the total an employer pays for a worker, not just the salary.

  • Direct hire

    A direct hire is a person your company employs itself, on its own payroll, from the first day.

  • Full-time equivalent (FTE)

    Full-time equivalent (FTE) is a unit that measures workload or headcount in terms of full-time positions.

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