Direct Sourcing ROI Calculator: Calculate Your Cost-Per-Hire Savings

Discover how much you could save by reducing hiring costs through direct sourcing recruitment

​Answer a few questions using our cost-per-hire calculator and find out exactly how much your current hiring model is costing you

What is Direct Sourcing?

Direct sourcing or direct recruitment is the strategic process where organizations hire talent directly, bypassing traditional staffing agencies and third-party intermediaries. This direct sourcing recruitment approach eliminates staffing agency markup, reduces cost per hire, and gives companies complete control over their hiring process. Unlike traditional recruitment methods that rely on external vendors, direct sourcing recruitment focuses on identifying and engaging high-quality candidates using your organization's brand and internal resources. This method enables more personal candidate relationships, faster hiring decisions, and significant cost savings—typically reducing hiring costs by 20-30% compared to agency-based recruitment.

How to Reduce Hiring Costs with Direct Sourcing?
​You've got the tech stack. The team. The targets. 
​But you're still overpaying for talent!
Between staffing agency markups and inconsistent pipelines, the cost of hiring an employee keeps increasing.

Eliminate Staffing Agency Markup

Most organizations spend 20–30% more per 

role when going through third-party vendors. Direct sourcing recruitment cuts out the middleman—delivering immediate cost savings by removing staffing agency markup.

Lower Costs of Hiring an Employee via Referrals

Referrals convert faster, perform better, and stay longer. When direct sourcing recruitment taps into employee and community networks, you reduce hiring costs without sacrificing quality.

Increase Temp-to-Perm Conversions

Contractors already familiar with your culture transition to full-time more smoothly—without additional placement fees. This reduces saving costs by thousands in onboarding and sourcing.

Reduce Cost Per Hire Through Redeployment

Alumni. Silver medalists. Contractors who've worked with you before. Direct sourcing makes it easier to re-engage proven talent—so you don't pay to source the same role twice. This dramatically reduces hiring costs as redeployment can fill up to 30% of open roles.

Fill Roles Internally First

Why search externally when the right candidate may already be in your ATS? Direct sourcing recruitment makes internal mobility and talent community re-engagement part of your everyday hiring flow.

Reduce Costly Mis-Hires

People from known pools—referrals, alumni, past contractors—fail less and stay longer. That means fewer backfills, lower training costs, and stronger teams. 

Optimize Your Cost Per Hire Formula

The traditional cost per hire formula includes agency fees, but direct sourcing eliminates these markups. When vendors "own" the candidate relationship, you pay inflated rates. Direct sourcing gives you leverage—so you hire on your terms and typically see a 10–15% reduction in hourly rates.

Beyond the Cost Per Hire Calculator: Intangible Direct Sourcing Benefits

Better Candidate Experience

When you control the hiring flow through direct sourcing recruitment, the experience improves—from first click to day one. This reflects in stronger brand perception and more quality applicants.

More Time for Strategic Work

Manual follow-ups, cold outreach, status updates—these drain recruiter time. Direct sourcing paired with smart workflows gives that time back 

for high-value activities.

Faster Time-to-Fill

Direct sourcing eliminates vendor delays. You fill roles faster, reducing pressure on teams, and improving business continuity.

Greater Visibility for Decision-Makers

Direct sourcing provides clearer data—on sourcing ROI, fill rates, redeployment, and costs. That makes it easier to forecast hiring needs and defend budget requests.

Why This Calculator Matters? 
​Staffing agency markups are climbing. 
​But your budget isn't. 
​Most TA leaders don't even know what is their real cost of hiring an employee. 
We built this calculator to give you a definitive answer for:

Exactly how much you can save annually through direct sourcing

What kind of ROI direct sourcing recruitment could unlock for your organization

Which strategies are worth the investment for a company your size

What's realistic for your timeline and resources

Tangible and intangible value in terms your CFO will understand

A data-driven case for for eliminating staffing agency markup

You're overpaying for talent. We can prove it.
​Get the exact numbers you need to build your business case.​

Run My Numbers
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