Onboarding cost by role - side-by-side comparison
Nine roles, full breakdown. Including turnover-adjusted cost per stable FTE-year, which reveals the counterintuitive truth about retail and hourly onboarding.
Which role is secretly the most expensive?
Sales and executive hires have the highest per-hire onboarding cost. But retail is the highest cost per stable FTE-year, because 60-75% annual turnover means you are effectively onboarding the same role 1.5-2.5 times per year. A $2,500 onboarding cost for a retail hire at 70% turnover costs $6,250 per stable year of employment. That is more expensive per productive FTE-year than a support rep and comparable to a junior designer.
| Role | Typical salary | Ramp | Total cost | % of salary | Annual turnover | Hidden % | Cost/stable FTE-yr | |
|---|---|---|---|---|---|---|---|---|
| Software Engineer | $130k | 6-9 mo | $65k-$130k | 50-100% | 15-20% | 65% | $80k-$165k | Deep dive |
| Senior Engineer | $185k | 9-12 mo | $95k-$210k | 55-95% | 10-15% | 70% | $105k-$240k | Deep dive |
| Sales AE | $110k | 6-9 mo | $75k-$165k | 50-100% | 30-35% | 60% | $98k-$215k | Deep dive |
| Sales Manager | $140k | 9-12 mo | $90k-$190k | 55-100% | 20-25% | 60% | $108k-$240k | Deep dive |
| Executive / VP | $250k | 9-12 mo | $150k-$500k | 75-200% | 20-40% | 75% | $188k-$700k | Deep dive |
| Nurse / RN | $75k | 6-8 mo | $40k-$85k | 55-85% | 25-30% | 65% | $50k-$110k | Deep dive |
| Retail / Hourly | $32k | 1-3 mo | $1.2k-$3.5k | 15-30% | 60-75% | 30% | $3k-$9k | Deep dive |
| Designer | $110k | 3-5 mo | $30k-$90k | 35-60% | 15-20% | 50% | $35k-$108k | Deep dive |
| Customer Support | $60k | 2-4 mo | $12k-$40k | 25-45% | 25-35% | 45% | $15k-$54k | Deep dive |
All figures assume US mid-market company, mid-tier location. Total cost includes productivity ramp. Cost/stable FTE-year = total cost divided by (1 - annual turnover rate). Sources