The arithmetic and a realistic example
Ten people in a two-hour steering meeting at an average fully loaded cost of €150 an hour comes to 10 × 2 × €150 = €3,000. Run weekly across forty-eight working weeks, that one recurring invite costs €144,000 a year: the price of a senior hire, spent without anyone ever approving it as spend.
Use the loaded rate, not the salary
Salary divided by working hours understates the true rate. A fully loaded hourly cost includes employer taxes, benefits, office and equipment overhead, and is typically 1.3 to 1.7 times the salary-derived figure. For senior attendees, the honest rate is higher still, because their scarce hours have alternative uses worth more than their payroll cost.
What the number understates
- Preparation and recovery. A two-hour meeting consumes pre-reads, slide preparation and the fragmented half-hours either side of it.
- Opportunity cost. The relevant question is not what attendees cost, but what they would otherwise produce, which for revenue-facing roles is far more than their hourly rate.
- Decision latency. A weekly cadence means decisions queue for up to a week; the cost of waiting never appears in the room.
- Cascade effects. One leadership meeting spawns preparation meetings below it, each with its own multiplier.
What the number overstates
To be fair to the other side of the ledger: a meeting that genuinely aligns twelve people, kills a doomed initiative or unblocks a stalled decision can repay its cost many times over. The calculator cannot see quality. Its job is to establish that the session has a price, so the agenda can be judged against it, and so the meetings that exist only because they existed last quarter lose their immunity.
Limitations
Average hourly cost flattens a room that usually contains both a graduate and a group director, and the output says nothing about whether the meeting should happen. Price the recurring meetings first; that is where the annual numbers get uncomfortable.