Correct. It costs's a lot to hire a new employee. I'd say for a small/medium size company hiring an engineer in the 100k-200k range, the cost of hiring is easily at least 6 months of that person's salary if not more.

That too, of course, but I didn't mean expenses like office space, training etc. but things like additional benefits/insurance that employer pays in addition to salary that can be considered part of compensation package but don't get paid to the employee.