Sales Managers: Cost Calculations for Hiring Salespeople

Calculating the Costs Associated w Recruitment Content Created by Landmark Makers www.landmarkmakers.com

Calculating the Costs Associated w Recruitment

1. Recruitment Costs

Human Resources hourly rate x hours. = ________

Managers hourly rate x hours = ________

Other Interviewers’ hourly rate x hours. = ________

Cost of the Ad ________

Cost of a Referral Bonus________

Agency Fee if used agency ________

TOTAL $_______

2. Employee Costs

Salary + Benefits + Perks ______

Benefits ______

Overhead including phones, equipment, expense account ________

TOTAL $_______

3. Time of Involved Personnel

a. b. c.

Managers hourly rate x hours involved in interviewing/coordinating/etc. = ________ Training Managers hourly rate x # of hours = ________
Administrative personnel hourly rate. x hours of coordinating/setup = ________

TOTAL $_______

4. Productivity Losses

Less than standard productivity cost x hours until fully trained ________

Distraction from other teammates to onboard/introduce themselves

(Calculated by hourly cost of team x hours to onboard ________

TOTAL $______

Lost Business (for Sales Positions)

How many prospects are usually contacted per day? ________

Value of those prospects? ________

TOTAL $______ How many days x cost of A x Cost of B _______

Other Costs

Managerial Energy Diversion ________

Company Cars, Personal Computers ________

Unemployment Compensation ________

Severance Allowances ________

Legal Fees ________

TOTAL $_______

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Sales Managers: Cost Calculations for Hiring Salespeople

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