Hidden Cost Calculator Methodology & Sources
How every figure in the calculator is derived: formula, inputs and source for each section.
01 MANAGEMENT TIME
Formula:(Hiring manager hours/week x hourly rate + HR hours/week x hourly rate) x weeks overrun.
Inputs:Hourly rate = annual salary / 46 working weeks / 5 days / 8 hours. Defaults: hiring manager 4hrs/week at £100,000, HR 6hrs/week at £65,000, 10 weeks overrun.
Source:Internal benchmark. 46 working weeks accounts for statutory holiday.
02 TEAM CAPACITY COST
Formula:(Average salary / 46 / 5) x extra days/week x weeks open x people covering x number of hires.
Inputs:Defaults: 16 weeks open, 2 people covering, £65,000 average salary, 1 extra day per week.
Source:Internal benchmark based on typical gap cover patterns in Life Sciences IT teams.
03 CONTRACTOR COVER
Formula:Day rate x 5 days x weeks engaged. If the contractor is inside IR35, multiply the total by 1.15. This covers the 15% employer National Insurance that applies under IR35 rules.
Inputs:Default £600/day, 26 weeks. Market range for mid/senior Life Sciences IT contractors: £400 to £1,000 per day.
Source:UK contractor market data 2025/26. IR35 uplift per HMRC deemed employment rules (15% rate, £5,000 secondary threshold, effective April 2025).
04 SINGLE CONSULTANT COVER
Formula:Day rate x 5 days x weeks engaged. Included in total exposure.
Inputs:Default £1,500/day, 26 weeks.
Source:Life Sciences IT consultancy market rate benchmark 2025/26.
05 FAILED HIRE
Formula:(Annual salary x 1.25) x (weeks in role / 52) x 1.2. Settlement fee (optional): a flat amount entered by you, added on top.
Inputs:The 1.25 multiplier covers employer NI at 15% above £5,000, pension at 10% (sector range 8 to 12), and £1,200 in healthcare and life insurance. The 1.2 multiplier covers management time lost, team disruption and rehire costs. Settlement captures payments in lieu, agreed settlements or legal fees.
Source:Industry consensus places the cost of a failed hire at 30% to 400% of annual salary, with mid/senior roles typically landing between 100% and 250%. The calculator applies 150% (1.25 x 1.2), deliberately conservative for a mid/senior Life Sciences IT role. In regulated environments, failed hires often surface late. During audit, inspection or validation, not during probation. The cost compounds because the gap was invisible until it wasn't.
06 DELIVERY IMPACT
Formula:User defined. The commercial or compliance cost of the delay.
Inputs:Tied to your specific programme: go-live, validation milestone, audit window, launch deadline.
Source:Cannot be standardised. Industry context: FDA Complete Response Letters tied to manufacturing or validation issues are reported at upwards of $10m per month of delay. Use your own internal figure.
07 ONBOARDING COST
Formula:(Annual salary x 1.25) / 12 x months to productivity x productivity gap. If a new hire is 60% productive, the gap is 40% and that 40% is what is costed.
Inputs:1.25 multiplier: employer NI at 15% above £5,000, pension at 10% (sector range 8 to 12), £1,200 in healthcare and life insurance. Default: 6 months to productivity, 60% productive during onboarding = 40% gap.
Source:Industry research. Time to full productivity: 3 to 12 months. Median for mid/senior roles in regulated environments: 6 months.
08 COST OF A WELL-RUN PROCESS
Formula:25% of annual base salary + cost of 15hrs hiring manager time + cost of 5hrs HR time.
Inputs:Hiring manager and HR costs use the same hourly rate methodology as section 01. Shown over a 5 week process.
Source:nufuture fee at 25% of base salary, shown alongside internal time costs to demonstrate the total cost of a properly managed process.
09 CONSULTANCY TEAM
Formula:Number of consultants x day rate x 5 days x weeks engaged.
Inputs:Whatever your engagement looks like. A typical Life Sciences IT programme runs 3 to 6 consultants at £1,200 to £2,500 per day.
Source:Market rate benchmark 2025/26. Used when consultancy spend is filling a permanent gap rather than buying capability.