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COST OF NOT HAVING HR

HR Cost Calculator · Ontario

What is not having HR costing you?

4 min

Free Ontario HR cost calculator — annualized risk and opportunity cost of missing HR across turnover, compliance, productivity, and recruitment.

Free Interactive Tool

What Is the True Cost of Not Having HR?

Model the hidden annual cost of inadequate HR infrastructure — from turnover and compliance risk to bad hires, litigation exposure, and productivity loss. Answer seven quick questions to get an estimated exposure.

Estimates are modeled from your inputs and stated assumptions drawn from SHRM turnover benchmarks, Canadian employment litigation data, and Gallup engagement research — not a quote or client result. Book a call for a custom diagnostic.

Question 1 of 7

How many employees does your organization have?

Use a slider to select your headcount.

50
What you'll learn

Numbers, not narrative.

  • 01Estimated annualized cost of turnover, recruitment, and bad hires for your headcount
  • 02Modeled compliance and litigation exposure from gaps in policy and process
  • 03Productivity drag from missing HR infrastructure
  • 04How the modeled exposure compares with an assumed cost of outsourced or fractional HR
How it works

Five exposures, one annual number.

Seven inputs — headcount, average salary, industry, current HR setup, turnover, terminations, and complaints — drive five separate cost models, then weigh the total against the cost of fractional HR.

  • 01Turnover cost. Replacement cost per departure (benchmarked at ~75% of salary) applied to your turnover rate, with a penalty when there is no dedicated HR function.
  • 02Compliance risk. Probability-weighted ESA, OHSA, and AODA exposure, scaled by an industry multiplier and your HR maturity.
  • 03Bad-hire cost. A 7–15% bad-hire rate (lower with mature HR) applied to your annual hiring volume.
  • 04Litigation exposure. Complaint volume and termination count weighted by an illustrative settlement assumption, with a documentation multiplier when HR is thin.
  • 05Productivity drag & ROI. Manager hours lost to ad-hoc HR work, then the whole total expressed as a return multiple against an assumed market cost for fractional HR — a stated model assumption, not 1205 pricing.
Who it's for

Anyone carrying HR off the side of a desk.

  • 01Founders and owner-operators running a 10–500 person business with no dedicated HR, who only ever counted salary — not turnover, risk, and lost management time.
  • 02CFOs and finance leaders who need an order-of-magnitude figure to weigh outsourced or fractional HR against the cost of the status quo.
  • 03Office managers and admins handling HR part-time who suspect the exposure is real but need the number to make the case internally.
Related service

Outsourced HR — enterprise-grade HR without the fixed cost.

We run your HR function end-to-end — compliance, ER, talent, culture — typically a fraction of the fully loaded cost of building every role in-house.

FAQ

Questions, answered.

What does the HR cost calculator estimate?
It estimates the annualized cost of not having a real HR function — turnover, recruitment, bad hires, compliance and litigation exposure, and productivity drag — sized to your headcount and industry.
What assumptions does the calculator use?
It uses Canadian benchmarks for turnover cost (typically 0.5–2x annual salary), average recruitment spend, and compliance fine ranges from ESA and OHSA. You adjust the inputs to your headcount, mix, and current HR setup.
How accurate is the HR cost estimate?
It is a directional estimate from your inputs and the stated assumptions — not an audit, a quote, or a client result. The value is in seeing the order of magnitude: many operators only ever count salary, not turnover, risk, and opportunity cost.
What should I do with the calculator result?
Use the number as a baseline to compare against the cost of outsourced or fractional HR. Once turnover and compliance exposure are priced in, the comparison usually becomes a conversation worth having — walk through your inputs with an HR partner to test them.
Is the HR cost calculator free?
Yes. The calculator is free, runs in your browser, and does not store your inputs. You can walk through your number with an HR partner in a 30-minute call afterward if you want a plan.
Want expert guidance?

Cost is the prompt. The plan is the conversation.

Walk through your number with an HR partner — and what to do about it — in a 30-minute call.