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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….

Cost_of_Mis-Hires_Form


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