Saiyō framework
The Cost Per Hire Curve
The economics of hiring at 5, 15, 30 and 50 roles per year.
What the framework says
Three models behave differently as annual specialist volume grows. Contingent agency cost per hire is flat at best and rises in practice, because fees scale with every hire and competitive briefs inflate them. Internal TA starts expensive, falls steeply as fixed cost is spread, then plateaus and steps up again with each additional headcount. Subscription headhunting carries a fixed monthly cost, so cost per hire falls continuously with volume. The crossover typically lands around fifteen specialist hires a year, which is the point where paying per placement stops being the cheaper option.
When to use it
You are modelling the true cost of next year's hiring plan, or comparing a subscription to contingent fees.
How to apply it
- 1Count only specialist hires, then place your annual volume on the horizontal axis.
- 2Model all three curves with your real salary bands and fee percentages.
- 3Include the cost of failed searches and re-hires, which sit almost entirely on the agency curve.
- 4Recheck the crossover whenever volume, role mix or geography changes materially.
The common mistake
Comparing a fixed monthly cost to a single placement fee instead of to annual spend at planned volume.
Indicative shapes based on Saiyō client benchmarks. Actual crossover varies by role mix, salary band and geography.