THE COST OF MIS-HIRES

Take 3-5 minutes and figure this for yourself.

Respond to each of these questions...the do the math!

It's an exercise that will shock you!

A.  How many people have you hired in the last five years?

B.  How many did you release in the last five years?

    Your five-year turnover rate (percent) is B/A x 100

C.  How many applicants did you interview?

D.  How long did the interview last?

E.  How many interview cycles have you run in the last five years?

F.  What is the value of your time by the hour?

G.  The cost of interviewing is C x D x E x F

H.  Your new hire's monthly salary (base salary)

I.   How many months did the person stay who eventually left?

J.  The payroll cost for that person is B x H x I

K.  How many hours did you invest each month in training, managing, and coaching this individual?

L.  Your cost of the time invested in this person is B x F x I x K 

THE COST OF HIRING AND TURNOVER IS G + J + L !
It is amazing: _________________

Replacing a key employee costs 30% - 150% of the annual salary!