The Cost of Failure Calculator: Hiring the Wrong Sales Person Costs! Find out how much.
By David Pearce, President, SalesTestOnline.com
What does it really cost when you hire the wrong sales person?
Much has been written over the years about the benefits of hiring the right salesperson. The flip side of this is that much has also been written about the costs and problems associated with hiring the wrong salesperson. Many numbers are bandied about with very little in the way of explanation of what the numbers are based on. Also since each business is different, inevitably the costs mentioned are going to lack accuracy in most cases. Salestestonline.com decided to do something about this. As far as we know this is the first time anyone has come up with a calculator to figure out what it actually costs when you hire a failed salesperson. The Cost of Failure Calculator is not meant as the definitive tool for determining the costs of sales hiring mistakes. Our intention though is to give you a pretty good idea of what the costs are in your business.
If you think this calculator is useful, fun or interesting then we would be happy to allow you to add it as a link on your web site. We would ask however that you let us know so that we can supply the appropriate linking information at http://salestestonline.com. To do so or to give us your comments please email us at email@example.com.
The calculator is divided into 3 broad areas. The first is the cost to hire/acquire the new sales person. The second is the cost to manage, train and work with the sales person once he/she is hired. The third is the cost to terminate him/her and the lost opportunities associated with having an ineffective sales person occupy the position. We have combined both hard (out of pocket) expenses with soft (intangible) expenses within the three areas. You may choose to look at the costs in as narrow or as broad a manner as you wish. This way you will end up with a number that makes the most sense to you. In case we have overlooked anything or if there are costs that are unique to your business we have added 'other costs' as a catch-all category at the bottom.
Hiring and Acquisition Costs
(graphic designers, copy writers, placing ads)
Managing and Training Costs
Termination Costs/Lost Opportunities
David Pearce is the President of SalesTestOnline.com. Established in 1986, SalesTestOnline.com is North America's #1 provider of pre employment assessment testing of sales candidates as well as sales profiling tools used to evaluate sales employees for sales competency. SalesTestOnline.com has over 1400 satisfied customers (97% re-order rate) who use our personality sales test to measure sales aptitude when hiring. Our online sales assessment test is customized to your unique criteria, fully automated, instantaneous, extremely accurate and very economical.
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