The real cost
Before you post that VP of Sales req, run the math.
Base is the small part. Stack OTE, benefits, a search fee, a five-month ramp, and the odds the first hire doesn't stick, and the number gets honest fast.
$220,000
OTE assumed at 2x base ($440,000)
What goes into "loaded cost"
- OTE at 2x base · $440,000
- Benefits + payroll load (28%) · $61,600
- Exec search fee (28%) · $61,600
- Ramp drag (5 mo @ 65% lost) · $119,167
- Mishire risk (40% odds) · $168,960
Full-time VP, loaded (12 mo)
$851,327
Fractional engagement (12 mo)
$222,000
Estimated savings
$629,327
74% lower
Over 12 months, before the upside of shipping pipeline in weeks rather than quarters.
Estimate only. Real engagements are scoped on a call. Inputs reflect common Seed-to-Series-A market assumptions for US enterprise sales hires.