Do You Know The TRUE Cost Of An Opening?
A major Fortune 50 company recently completed a study to determine the TRUE cost of an open sales position. They found that the combination of lost revenue, cost of sales management and human resource’s time, direct costs such as advertising, and other indirect/difficult to measure expenses related to filling a territory added up to over $9,000 per week.
- Most companies can readily point to what they have paid out in agency fees or what the total costs are of hiring in-house recruiters by calculating their salaries and benefits. But, it is important to identify the “hidden” costs incurred when determining how to implement an effective recruiting model. Costs such as:
- The cost of manager’s time - the more time a manager has to take away from all of his/her other responsibilities to interview….the greater the hidden costs of filling the opening.
- The cost of vacant territory - the longer a territory is vacant, the greater the market share and revenue lost.