As your business grows, you’ll likely experience the need for IT support. Whether you’re looking for talent to control cybersecurity, network management, or custom software solutions, you may find yourself wondering what the associated costs for this new role will be. While many decision-makers think of salary and benefits when budgeting for a new role, these are just the tip of the iceberg when it comes to IT talent costs. This blog will walk you through the true cost drivers behind filling an IT role, taking out the guesswork and equipping you to hire and retain talent more efficiently. We’ll also provide actionable strategies to manage costs. 

Direct Costs: More Than Just Salaries 

Recruitment & Advertising 


Before you discuss salary with your new IT talent, you’ll first need to find them and get them to apply. Locating qualified candidates requires substantial investment in job postings, applicant tracking systems (ATS), and recruiter tools. Premium platforms like LinkedIn Recruiter can cost upwards of $7,500 annually (but you’ll also want to be featured on ZipRecruiter, Indeed, and Glassdoor), and sponsorships on industry-specific boards, like Dice and ITJobPro, add to the expense. 

While spending so much on recruiting alone may sound steep, keep in mind that the IT field is highly competitive, with top talent often having their pick of company to work for. Standing out on recruiting sites is your best bet to get in front of qualified candidates that can help your business. 

External Recruitment Agencies 


For companies with tight timelines or specialized hiring needs, recruitment agencies may be the best option. While they typically charge 15–25% of a candidate’s annual salary, they can expedite the process and provide access to a wider talent pool. 

Interview Process 


Time spent by senior leaders, engineers, and HR recruiters conducting interviews is an often-overlooked cost. When high-level employees dedicate hours to interviewing, their regular work is delayed, leading to indirect productivity losses. To more clearly visualize the costs here, think about each interviewer’s hourly earnings, and dedicate that to hiring.  

For IT roles, it typically takes 3-5 rounds of interviews before a decision is made, and it can take even longer when recruiting for remote/global roles because the talent pool is larger.  

Onboarding & Training 


After the interview process concludes and an offer is accepted, the real investment begins. New hires need time to acclimate, and that process involves training, purchasing equipment, and ensuring they’re fully prepared to contribute. 

Onboarding remote employees presents unique challenges, as they don’t have the benefit of in-person training or immediate access to team members for quick questions. Setting up secure access to company systems, shipping equipment, and integrating them into company culture all take additional effort. Slow onboarding can delay the time it takes for new hires to reach full productivity. 

Turnover: The Silent Cost That Compounds 

What’s worse than a high recruiting cost? Paying it twice due to turnover. High turnover rates can drain resources, forcing companies to restart the recruitment cycle. Beyond the financial implications of rehiring, turnover creates disruption across teams, leading to lower morale, missed project deadlines, and an increased risk of burnout for remaining employees. 

Lost Productivity, Project Delays, and Risks 
When key IT roles remain unfilled, existing teams absorb the extra workload. As a result, they may cut corners or experience fatigue, which impacts overall project quality and deadlines.  

Beyond immediate workload strain, unfilled IT roles can have ripple effects across an entire organization. Delays in software development can stall product launches, unresolved security gaps can expose sensitive data to breaches, and insufficient IT support can lead to prolonged downtime. In industries like finance, healthcare, and e-commerce, even minor IT disruptions can result in lost revenue and reputational damage.  

Reducing IT Hiring Costs: Practical Strategies for Success 

1. Reduce Turnover Through Employee Retention 


One of the most effective ways to lower hiring costs is by improving retention. Offering competitive compensation, fostering a positive work culture, and promoting career development helps retain top talent and reduces the need for frequent hiring. 

2. Upskill Your Existing Team 


Rather than constantly hiring externally, consider investing in upskilling programs for current employees. Internal development not only boosts morale but also fills skill gaps without the high cost of recruiting new talent. 

3. Optimize Your Hiring Process 


Streamline the recruitment pipeline to reduce wasted time and resources. Leverage AI-driven resume screening, conduct virtual interviews to speed up the process, and establish clear hiring criteria to quickly identify the right candidates. 

4. Use Contractors and Freelancers for Specialized Tasks 


For short-term or highly specialized needs, consider hiring contractors or freelancers. While the hourly rates may be higher, they eliminate the long-term costs associated with full-time hires. 

Avoiding Costly Mistakes: The Price of a Bad Hire 

A poor hiring decision can cost 30% to 200% of the employee’s salary due to lost productivity, project delays, and team disruption. Beyond financial losses, a bad hire can affect morale and slow down progress on critical initiatives. 

Mitigating Risk Through Better Screening 
To avoid costly mistakes, define roles clearly before posting job ads, conduct thorough interviews, and consider technical assessments to ensure candidates possess the required skills. 

Final Thoughts: Balancing Cost Efficiency with Quality Talent 

Hiring for IT roles is a complex process that extends beyond salary considerations. Understanding and managing the hidden costs associated with recruitment, onboarding, and turnover can save companies substantial time and money. By improving retention, investing in internal talent development, and optimizing the hiring process, organizations can secure high-quality talent while maintaining financial efficiency. 

As one IT leader aptly put it, “Hiring isn’t just about filling a seat — it’s about getting the right person, at the right time, in the right way.” 

Ready to optimize your IT hiring process? Contact Emergent Staffing today to explore how our expertise can help streamline your recruitment and retain top talent.