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Estimate the Real Cost of Hiring and Turnover
Imagine, you are a Regional Sales Manager with 20 states in your region. You have 10 Account Executives, each with territories that is forecast to deliver $1,000,000 in revenue in the next 12 months. Each are paid a salary of $90,000 per year plus 20% benefits and bonuses.
According to industry and market trends, the turnover rate of AE's is about 25% per year. After examining and evaluating your team you know your team comprise of 2 "A" players (20% of team and delivers 67% more in volume than your average "B" and "C" combined). You have a feeling about the 2-3 "C" players that might leave.
So you start planning. With the help of your HR team and outside partners you quietly began recruiting talent. You know that during the recruitment period, productivity in the territory will likely decline 50%. You assume that it will take 3-5 months for the new hire to ramp up to 100%, so you plan that during ramp up 50% decline will continue.
Adjust the fields below to estimate per-hire cost, annual turnover impact,
revenue delta, and break-even time. The numbers used below are for illustration purposes only and meant only to began the process of planning and analysis.