Most CEO’s are lucky to get a 20% success rate when hiring salespeople.  Be honest and let yourself know how much it’s costing you with the following 5 minute exercise.

Turnover Percentage

A ______________ How many people have you hired in the past five years?

B ______________ Number of salespeople that have left or have been let go in the past five years

C ______________ Turnover percentage (%) = (B/A) x 100

Cost of Interviewing

D ______________ Approximate number of people interviewed

E ______________ Average time of interviews (hrs)

F ______________ Value of your time and/or HR costs ($ per hour)

G ______________ Cost of Interviewing ($) = D x E x F

Cost of Payroll

H ______________ Average base salary you pay salespeople ($/month)

I  ______________ Average length of employment of salespeople no longer with company (months)

J ______________ Cost of Payroll ($) = B x H x I

Cost of Sales Training

K ______________ Approximate time invested in training, managing and coaching one salesperson (hours)

L ______________ Average cost of outside training per salesperson ($)

M ______________ Cost of Training ($) = (K x F x B) + (L x B)

Miscellaneous Hard Costs

N ______________ Recruiter fees paid ($)

O ______________ Cost of leads ($)

P ______________ Cost of phones bills and/or contact lists ($)

Q ______________ Advances and/or commissions paid in advance on non-collected accounts ($)

R ______________ Cost of travel and /or reimbursed expenses ($)

S ______________ Miscellaneous Hard Costs ($) = N + O + P + Q +R

Total Costs

________________ Total Cost of Sales Duds ($) = G + J + M + S

It can be frustrating to know what “sales duds” have cost you, but at least you have a benchmark that will help you know what you can invest to fix the problem.  If you would like better results, contact me.