Industry-specific data: 20.5% avg turnover | $95,000 avg salary | 150% replacement cost
"Tech companies need to stop thinking about benefits as an HR function and start thinking about them as a competitive strategy. Every engineer you lose to a company with better benefits costs you $142,000+. A PEO can give a 30-person startup the same benefits menu as a Series C company at $80-$130 per employee per month. That's the highest-ROI investment in tech."
— Business Insurance Health Benefits Strategy Team
Tech workers expect premium medical (low/zero deductible), generous PTO or unlimited PTO, mental health platforms, 401k with competitive matching (4-6%), equity or profit sharing, parental leave (12+ weeks), fertility benefits, remote work support, professional development budgets, and wellness stipends.
Focus on benefits that FAANG companies offer but that are achievable at scale: strong medical coverage through a PEO (large-group rates), flexible work arrangements, meaningful equity, professional development budgets, and a culture of work-life balance. Many engineers prefer smaller companies if the benefits gap isn't too wide.
SHRM estimates 150-200% of salary for specialized technical roles. For a $150,000 senior engineer, that's $225,000-$300,000 including recruiting fees (often 20-25% of salary), lost productivity, project delays, knowledge transfer costs, and the ramp-up time for the replacement.
LinkedIn data shows that tech workers who rate their benefits as 'excellent' are 2.8x less likely to be actively job searching. Benefits satisfaction is the third strongest predictor of retention in tech, behind only compensation and growth opportunities.
Industry data sourced from BLS JOLTS, KFF 2024, SHRM Human Capital Benchmarking, and industry association reports.
This calculator is educational. Consult with a licensed benefits advisor for plan-specific projections.
The ROI methodology applied here uses a multi-factor model that accounts for direct cost offsets (reduced turnover recruiting expenses, lower workers' compensation experience modification rates) and indirect benefits (productivity gains from reduced absenteeism, improved employee engagement scores). Industry-specific parameters for Technology are calibrated against Bureau of Labor Statistics JOLTS data and SHRM Human Capital Benchmarking reports.
Turnover cost multipliers reflect the total cost of separation, vacancy, and replacement — including training ramp-up periods that vary by role complexity. For Technology, we apply position-weighted averages that account for the mix of skilled and entry-level roles typical of the sector. Workers' compensation savings projections use NCCI class code data where available.
These estimates are conservative by design. Employers with existing high turnover rates or those in tight labor markets often realize ROI multiples 1.5-2x above the baseline projections shown. We recommend running this analysis alongside a benefits benchmarking study to identify the optimal investment level for your competitive market.
This analysis draws from the following primary data sources:
Methodology note: All projections use a composite rate approach with demographic adjustment factors. State-specific regulatory constraints are reflected in baseline rate assumptions. Results are directional estimates intended for planning purposes.