Commercial
Year-one cost
What a role or engagement really costs in its first twelve months.
Definition
The first-year total for a decision, including the one-off costs that never recur: recruitment, equipment, onboarding ramp, tooling setup, and the management time spent bringing someone up to speed. Year two is almost always cheaper than year one for the same output.
Why it matters
Comparing a year-one outsourced cost against a steady-state in-house cost, or the reverse, is the most common way a staffing business case gets built backwards. Model both options over the same period, and state the assumed retention. A twelve-month comparison flatters whichever side you forgot to load with setup costs.
Related
Read next
Total cost of ownership
Everything a hire or a project costs, not just the invoice.
Read the definition ›All-in rate
A single rate that already contains every cost the provider will charge.
Read the definition ›Onboarding ramp
The time before a new person is fully productive.
Read the definition ›Zero-based budgeting
Rebuilding a budget from nothing each cycle instead of adjusting last year's.
Read the definition ›Next step
Ready to build or scale your team?
Tell us what you need and we will match you with pre-vetted Lebanese professionals ready to integrate with your team.