Kit standardization and variance
Standard kits reduce ordering friction and shorten start-day readiness. Track a baseline bundle for each role, then layer exceptions such as extra monitors, regional keyboards, or secure tokens. In many teams, 70–90% of hires fit a single kit, which makes forecasts more accurate and vendor negotiations easier. Use “Team once” items for shared conference gear or spare docks kept on-site. Maintain a price book updated quarterly and record preferred suppliers, lead times, and warranty terms. When roles change, revise the kit template and rerun the estimate to keep offers consistent and prevent last-minute purchase orders across global locations and different onboarding cohorts monthly.
One-time purchases versus recurring tools
Separate capital-like items from monthly services to avoid underestimating long-run spend. Endpoint management, security agents, and collaboration add-ons often look small per user, but over a 12-month horizon they can rival hardware accessories. If your horizon is the expected tenure, compare scenarios at 6, 12, and 24 months to see how subscriptions change the cost per hire.
Shipping, handling, and setup labor
Logistics is commonly 3–10% of the equipment total, especially for distributed teams. Per-hire shipping captures packaging and courier fees, while flat logistics covers bulk freight or customs brokerage. Setup labor is best modeled as hours per hire multiplied by an internal rate, including imaging, account provisioning, and compliance checks. If equipment is staged centrally, add time for rework and troubleshooting.
Policy levers that move totals
Coverage percentage reflects cost-sharing policies for home office items or BYOD programs. Discounts apply cleanly to equipment lines when purchasing in batches, while tax and contingency are safer on the covered subtotal. Contingency typically ranges from 2–8% to absorb expedited replacements, damaged deliveries, and spare stock. Residual value offsets totals when devices are reclaimed and redeployed after offboarding.
Using results for approvals
Present both grand total and cost per hire to align HR, finance, and IT. A clear item table helps spot outliers, such as premium laptops assigned to non-technical roles. For budgeting, multiply per-hire cost by planned headcount and include sensitivity ranges for shipping and subscription months. Export CSV for audit trails, and share the PDF summary in onboarding playbooks.