Cost of Mis-Hire Calculator
There are innumerable estimates and theories regarding the real costs of a mis-hire – a hire that does not achieve key business goals, is terminated for performance reasons, resigns etc. I came across this work sheet developed by Sales Benchmark Index which draws on work done by Topgrading.
I do not agree with all the inclusions – i.e., “Maintaining the person in job” as those costs would be incurred for a highly successful hire. The cost of “Mistakes/Failures…” is also difficult to calculate. I think it is more interesting to think of the opportunity costs incurred. Research by McKinsey indicates that:
High performers deliver significantly better results than do average performers ―
- 67% increased revenue in sales roles,
- 49% increased profit in general management roles, and
- 40% increased productivity in operations roles.
Hence the opportunity cost of a mis-hire in a sales role is 67% etc.
I hope you find the worksheet interesting and of valud.
Access the worksheet….