The Cost of Hiring Ghosts
Finding key new employees should be a strategic goal for any company. However, if your company spends a great deal of resources on hiring and training people only to have them leave, that can be a real problem. These “ghosts” that are no longer with your company might cost you a lot more than you think. It is critical that you find the right people in the first place to prevent this ghost syndrome from hindering your key business goals. The worksheet below will help you determine the true cost of hiring ghosts in your organization.
How Much Money Are You Wasting on Ghosts?
How much money did you spend on salespeople who are no longer with your company?
A. We currently have _______salespeople.
B. They produce approximately $________in total revenue.
C. We hired _____salespeople in the past five years.
D. _______Salespeople have either left or been “released” during this period.
E. OUR TURNOVER PERCENTAGE (D/C) x 100) is ______.
F. Before hiring those individuals we probably interviewed ______people.
G. Each interview probably lasted about _______hours.
H. I value my time at $______per hour.
I. COST OF INTERVIEWING (F x G x H) $_________.
J. We paid each new hire a base salary of $______a month.
K. The salespeople who are no longer with us lasted an average of _____months.
L. COST OF PAYROLL (D x J x K) $________.
M. RECRUITER FEES PAID $____________.
N. Personal time invested in training, managing and coaching one-person ____________.
O. COST OF PERSONAL COACHING AND TRAINING (N x H x D) ____________.
P. MONEY SPENT ON TRAINING (Sales, Product) (P x D) $_________.
Q. Costs of Leads provided $______________.
R. Approximate total of phone bills run up by these people from prospecting $___________.
S. Cost of Lease used on these people $______________.
T. Advances, Commissions paid in advance on accounts not collected $____________.
U. Cost of sales calls, travel, etc. $___________.
V. Reimbursed expenses $________________.
W. HARD COSTS ASSOCIATED WITH GHOSTS (Sum of Q through V) $_______________.
COSTS OF GHOSTS (SUM of I+L+M+O+P+W) $__________.