Calculator inputs
Example data table
Use this sample to validate your setup and expectations.
| Scenario | Freeze months | Roles paused | Avg salary | Benefits | Taxes | Monthly coverage | Net savings |
|---|---|---|---|---|---|---|---|
| Sample A | 6 | 10 | $70,000 | 25% | 8% | $20,000 | $288,100 |
| Sample B | 3 | 5 | $85,000 | 30% | 10% | $35,000 | $14,875 |
| Sample C | 9 | 18 | $60,000 | 22% | 7% | $10,000 | $861,822 |
Samples assume modest one-time costs and a 12% productivity impact. Your environment may vary widely by role and labor market.
Formula used
RampAvoided approximates ramp drag avoided: RolesFrozen × Salary × (min(RampMonths, Months)/12) × Impact%.
How to use this calculator
- Set the freeze length and the number of roles paused.
- Enter a blended annual salary and your benefit and tax loads.
- Add one-time hiring expenses you typically incur per hire.
- Estimate monthly overtime and contractor spend covering vacancies.
- Choose a productivity impact percent reflecting delays and burnout.
- Click Calculate to view savings above the form.
- Use CSV or PDF to share assumptions with leaders.
Practical tip: Run three cases by varying impact and coverage spend. This shows risk if delivery costs spike.
What the calculator measures
This model estimates net savings from pausing planned hiring for a defined period. It adds avoided loaded compensation, avoided one-time hiring expenses, and avoided ramp impact, then subtracts vacancy coverage spend and vacancy productivity drag. By separating gross avoided costs from freeze-related costs, leaders can see whether the pause truly reduces total workforce spend or merely shifts it into overtime and contractors.
Key cost drivers to benchmark
In many organizations, benefits loads sit between 18% and 35% of salary, while employer payroll taxes often fall between 5% and 12%, depending on jurisdiction. One-time hiring costs can range from 5% to 20% of first-year salary when recruiting fees, equipment, and onboarding time are included. The calculator lets you input these drivers directly so the savings estimate reflects your policy, tools, and market conditions.
Vacancy coverage and delivery risk
Hiring freezes frequently trigger hidden spend. Overtime premiums, temporary labor, and consultants may rise to protect service levels and deadlines. If monthly coverage costs exceed the break-even value displayed in results, the freeze stops being financially attractive, even before accounting for missed revenue or customer churn. Use the productivity impact field to test scenarios where delays increase rework, defects, and employee burnout.
Using break-even to guide approvals
Break-even monthly coverage spend shows how much you can pay to cover vacant work before net savings drop to zero. This is useful for governance: if a business unit requests contractors above break-even, the request effectively cancels the savings case. Pair this figure with staffing prioritization by role criticality, such as revenue operations, security, or compliance positions that create outsized risk when unfilled.
Building a defensible savings narrative
For executive review, run three cases. Start with a conservative impact percent and current coverage costs, then model a higher impact scenario to reflect peak-season load. Finally, model a reduction scenario where process improvements lower overtime and contractor needs. Export CSV or PDF to document assumptions, share with finance, and compare results across functions, locations, or job families for consistent decision-making. Track the roles paused, the months covered, and the resulting net figure to support quarterly reforecasting and transparent stakeholder updates across the organization.
FAQs
1) What does “net savings” mean in this tool?
Net savings equals avoided costs minus vacancy coverage and vacancy productivity costs. Positive values suggest savings under your assumptions; negative values indicate the freeze may cost more.
2) How should I estimate benefits and payroll tax percentages?
Use your finance or payroll burden rates. If you do not have one, start with benefits 20–30% and payroll taxes 6–10%, then refine using actual employer contribution reports.
3) Why include recruiting, onboarding, equipment, and training costs?
These are real cash and time costs that occur when hiring. Including them helps compare a freeze against alternative actions, such as slowing hiring, changing mix, or improving internal mobility.
4) How do I set the productivity impact percentage?
Choose a value that reflects delivery delays, quality issues, and burnout during vacancies. Many teams start with 5–15%. Run low, expected, and high scenarios to see how sensitive results are.
5) What is the break-even monthly coverage spend?
It is the maximum monthly overtime plus contractor spend you can sustain before net savings reach zero. If your expected coverage exceeds this number, the freeze is unlikely to save money.
6) Can I use this for partial freezes or specific departments?
Yes. Enter only the roles affected and use a blended salary for that group. Add coverage costs and impact assumptions that match the department’s workload and service expectations.