Hiring guide
How Much Does It Cost to Hire a Software Engineer in the UK?
The costs, added up
Hiring a software engineer costs far more than the salary. The real figure is salary plus acquisition cost plus the risk of getting it wrong. Here’s how it breaks down.
1. Salary
The biggest line. In London in 2026, mid-level engineers earn roughly £55k–£85k, seniors £85k–£120k, and staff or principal engineers £120k–£150k base. Outside London, run 15–25% lower. See the UK tech salary report for the full breakdown.
2. Recruitment cost
Three broad models:
- In-house / DIY: no fee, but real time cost, sourcing, screening and coordinating interviews can eat weeks of a hiring manager’s month.
- Agency (contingent recruitment): roughly 15–25% of first-year salary, paid on a successful hire. Fast and no fixed cost between roles.
- Retained / embedded recruitment: a fixed fee for senior searches, or a monthly fee when hiring at volume.
See how the models compare in how we work.
3. Time-to-hire
Every week a role stays open has a cost, in lost output and in the workload piling onto the rest of the team. The strongest candidates also move quickly, so a slow process quietly raises your cost per hire by losing you the best people.
4. The cost of a bad hire
This is the one teams underestimate. A senior mishire can cost well over their salary once you account for lost productivity, the drag on the team, and re-hiring. It’s why a genuine technical screen, before anyone reaches your interview loop, is the highest-leverage spend in the whole process.
How to reduce the total cost
- Screen properly and early. Filtering out weak fits before your team spends interview time is the cheapest thing you can do. We technically screen every candidate ourselves for exactly this reason.
- Move fast on strong candidates. Speed is free and wins offers.
- Pick the right recruitment model for your volume and the criticality of the role, rather than defaulting to one.
If you’d like a cost estimate for a specific role and how we’d approach it, talk to us.
FAQ
Frequently asked questions
How much does it cost to hire a software engineer in the UK?
Beyond the salary (£55k–£120k+ depending on seniority), budget for recruitment cost (agency fees of roughly 15–25% of first-year salary, or the time cost of doing it yourself), several weeks of hiring manager and team time, and onboarding. A senior hire in London can carry £15k–£30k of acquisition cost on top of salary.
What are typical recruitment agency fees for engineers?
Contingent agency fees usually run around 15–25% of first-year salary, payable on a successful placement. Retained search for senior or leadership roles is a fixed fee agreed up front. Embedded/RPO is a monthly fee when you're hiring at volume.
What does a bad engineering hire cost?
A lot. Between salary paid, lost productivity, the drag on the team, and the cost of re-hiring, a mishired senior engineer can cost well over their annual salary once you account for everything, which is why the screen matters more than speed.