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Why It Matters

“Internal hiring costs are like hidden fees — always present, rarely accounted for.”

When companies talk about cost per hire, they often think in simple terms: recruiter salary, maybe some software, and a bit of time. But when you zoom out and factor in opportunity cost, lost productivity, and bad hires, the real number can be staggering.

Understanding the full cost of internal hiring helps you make better decisions, not just cheaper ones.

What Most Companies Miss

Here’s what’s usually included:

  • Recruiter salary

  • Job board or LinkedIn licensing fees

  • ATS subscriptions

Here’s what is usually ignored:

  • Executive and stakeholder time

  • Delayed delivery on strategic goals

  • Morale drag from prolonged gaps

  • Poor hires that take months to unwind

Recruitment Executive Search

Recruitment Executive Search

We choose the right person for the right role

Mistakes to Avoid

  • Equating “internal” with “free”
  • Ignoring time-to-fill as a compounding cost
  • Failing to track the cost of rework or rehiring

Time Is Your Most Expensive Resource

Every week an executive role sits open:

  • Team decisions slow down
  • Key initiatives stall
  • Leaders absorb extra load (and burn out)
  • Competitors move faster while you stay stuck

  • The cost of not hiring the right person fast enough often exceeds the cost of the hire itself.

The Multiplier Effect

Delays don’t scale linearly, they multiply:

  • Missed product launches
  • Lower sales quarter
  • Internal promotions delayed
  • Cultural instability

  • The impact spreads across departments, especially at VP and C-suite levels.

What Great Looks Like

A company that tracks internal hiring costs like a real line item

A leadership team that treats key hires like strategic investments

A hiring model that factors in urgency, quality, and opportunity cost

How to Get Clear

Start with:

  • Recruiter + HR salary allocation
  • Time spent by execs, founders, and hiring panels
  • Lost productivity per week per role
  • Cost of external consultants covering the gap

  • Then ask: what would we gain if this hire landed faster?

🟨 TL;DR: Executive Onboarding Cheat Sheet

  • It’s not just salary, it’s time, delay, and distraction
  • Executive roles carry exponential cost when delayed
  • Internal hiring is rarely “free”, and often inefficient

  • Strategic hires should be measured in ROI, not just headcount

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