Calculator inputs
Formula used
- Current payroll per month = Current headcount × Avg monthly fully-loaded cost (current)
- Salary savings = Planned hires paused × Avg monthly fully-loaded cost (new hire) × Freeze duration
- Recruiting savings = Planned hires paused × Recruiting cost per hire
- Gross savings = Salary savings + Recruiting savings
- Baseline burnout cost = Current payroll per month × Burnout loss % × Freeze duration
- Effective burnout cost = Baseline burnout cost × (1 − Mitigation effectiveness %)
- Freeze operating costs = (Overtime/contractors per month + Mitigation spend per month) × Freeze duration
- Net burn reduction = Gross savings − (Effective burnout cost + Freeze operating costs)
How to use this calculator
- Enter current headcount and average monthly fully-loaded cost.
- Add planned hires you expect to pause during the freeze.
- Set the freeze duration and recruiting cost per hire.
- Estimate monthly overtime or contractor coverage costs.
- Choose a burnout productivity loss percentage for your payroll.
- Add monthly mitigation spend and set low/likely/high effectiveness.
- Calculate to compare scenarios and check break-even timing.
- Export CSV for analysis or PDF for stakeholder sharing.
Example data table
| Team size | Planned hires | Freeze months | Burnout loss % | Overtime/month | Mitigation/month | Likely effectiveness |
|---|---|---|---|---|---|---|
| 80 | 6 | 3 | 3.0% | 3,000 | 1,500 | 20% |
| 150 | 15 | 4 | 4.5% | 6,000 | 2,500 | 25% |
| 300 | 30 | 6 | 5.5% | 12,000 | 5,000 | 30% |
Cost drivers that shift during a freeze
Pausing hiring reduces cash outflow from new salaries and recruiting activity, but it can raise hidden costs. Track avoided fully loaded salary for planned roles, plus recruiting spend such as agency fees, ads, assessments, and recruiter time. Monitor overtime and contractor coverage that keeps service levels stable. Pausing 10 hires at 3,800 per month for four months avoids 152,000 in salary outflow.
Estimating burnout productivity loss with payroll ratios
Burnout loss is modeled as a percentage of current payroll to reflect slower cycle time, errors, and rework. Many HR teams start with 2% to 6% of payroll for short freezes, then stress test 8% to 12% if workload spikes or attrition rises. Use pulse surveys, ticket backlog, and quality metrics to refine the rate. If monthly payroll is 420,000, a 4.5% loss implies 18,900 per month in reduced output.
Mitigation spending and effectiveness scenarios
Mitigation spend can include workload rebalancing, manager coaching, tooling automation, mental health support, and process simplification. Because outcomes vary, the calculator uses low, likely, and high effectiveness rates to reduce baseline burnout costs. A low case might assume 10% improvement, while strong execution can reach 30% to 45% in targeted teams. Tie actions to measurable goals, such as reducing after hours work by one day per week.
Break-even timing for stakeholder alignment
Break-even month indicates when cumulative gross savings exceed cumulative burnout, overtime, and mitigation costs in the likely scenario. A faster break-even supports extending the freeze, while a slow or missing break-even suggests narrowing scope, reprioritizing work, or funding backfill for critical roles. Share break-even alongside net burn reduction to support decisions. Include leading indicators such as sick leave and escalation volume.
Using the outputs for planning and governance
Treat results as a decision brief: gross savings, burnout cost, and net burn reduction per month. Compare scenarios to set guardrails, such as maximum overtime per month or minimum effectiveness needed for mitigation to pay off. Export CSV for review and PDF for updates, and revisit assumptions. Update inputs after roadmap changes or reorganizations to keep the model credible.
FAQs
1) What does “burn reduction” mean in this calculator?
It represents the net change in spending during a freeze: avoided salary and recruiting costs minus overtime, mitigation spend, and the estimated cost of burnout-related productivity loss.
2) How should we choose a burnout loss percentage?
Start with a range and triangulate using internal signals: engagement scores, backlog growth, defect rates, incidents, sick leave, and attrition. Use a conservative likely value, then test higher rates for risk.
3) What should be included in recruiting cost per hire?
Include external fees and internal time costs: agency spend, job ads, assessment tools, background checks, referral payouts, and recruiter or manager time that would otherwise be redirected.
4) Why model low, likely, and high effectiveness?
Mitigation impact varies by manager capability and workload. Scenario ranges help you see downside risk and upside potential, and they reduce overconfidence when presenting results to stakeholders.
5) How do we interpret the break-even month?
It is the first month where cumulative gross savings exceed cumulative costs in the likely scenario. If break-even is late or missing, consider shortening the freeze or funding critical backfill.
6) How often should we refresh inputs?
Update at least monthly, and immediately after major changes such as roadmap reprioritization, policy shifts, or reorgs. Refreshing inputs keeps the model aligned with real workload and cost patterns.