The true cost of hiring a software developer in the UK

When budgeting for a new engineer, it's tempting to look only at the advertised salary. But the real cost to the business, often called the fully loaded cost, is significantly higher once everything else is included.

#The components of fully loaded cost

• Base salary: the headline number.
• Employer National Insurance: paid on earnings above the threshold.
• Pension contributions: at least the auto-enrolment minimum, often more.
• Benefits: health cover, training budgets, bonuses and share schemes.
• Recruitment: agency fees are commonly a percentage of first-year salary, plus internal time spent interviewing.
• Equipment and software: laptops, monitors and licences.
• Workspace: desk, office costs or a home-working allowance.
• Management time: onboarding, one-to-ones and performance reviews.

#The hidden cost: time

Senior engineering roles can take months to fill, followed by a notice period before the person can start. Every month a role sits empty is a month of roadmap that isn't delivered. That opportunity cost rarely appears in a budget spreadsheet, but it's often the most expensive item of all.

#Flexibility has value too

Permanent hires are the right choice for many roles. They're harder to adjust, though, if priorities change. With staff augmentation or a dedicated team, you can scale up for a launch and down afterwards, or swap skills as the product evolves.

#Running the comparison

1. List the roles you need and the realistic salary for each.
2. Add on-costs, recruitment, equipment and workspace to get the fully loaded figure.
3. Estimate time-to-hire and what the delay costs your roadmap.
4. Compare against a partner's all-inclusive monthly rate, including management support.