Cost of wrong hire calculator

What does it really cost when you hire the wrong sales person?
Every company knows that hiring good people can make a huge difference to their business. Few realise the real cost of making a recruitment mistake.

How does it add up for you?
To get an idea of how much it could cost your company, just fill in the relevant boxes below. You may be devastated by the total!

1. Candidate Generation and Recruitment Costs

Cost of writing/producing ads for newspapers/job boards
(graphic designers, copy writers, placing ads)
£ 
Cost of running ads in newspapers/job boards £ 
Cost of writing job description £ 
Cost of internal company recruiters £ 
Cost of third party recruiters £ 
Careers Fairs, Trade Shows etc. £ 
Cost to use outside interviewing/reference checking services £ 
Cost of testing/evaluation services
(pre-employment tests, drug tests, background checks, medical exams etc.)
£ 
Cost of time to use above services
(your time plus the time of other managers/recruiters involved)
£ 
Cost of time to read CVs from job applicants
(your time plus the time of other managers/recruiters involved)
£ 
Cost of time to telephone screen job applicants
(your time plus the time of other managers/recruiters involved)
£ 
Cost of travel
(flights, hotels, meals, car etc. associated with meeting job applicants)
£ 
Cost to communicate
(long distance, call charges, postage, couriers, admin time for emails, letters etc.)
£ 
Cost of time to interview applicants
(your time plus the time of other managers/recruiters involved)
£ 
Cost of time to reference check applicants
(your time plus the time of other managers/recruiters involved)
£ 
Cost of support/administration to bring on new sales person
(orientation materials, set up on payroll and benefit plans)
£ 
Cost of moving expenses £ 

2. Managing and Training Costs

Salary £ 
Company benefits £ 
Automotive expense £ 
Travel expenses £ 
Entertainment expenses £ 
Equipment expenses
(laptop computer, fax, phones, mobile etc.)
£ 
Office rental expenses
(Employee’s attributed share)
£ 
Miscellaneous office expenses
(desk, chair, office materials)
£ 
Communication expenses
(cell phone, long distance, couriers etc.)
£ 
Cost of sales support materials
(brochures, giveaways etc.)
£ 
Costs of sales sample materials
(sample books, demo equipment etc.)
£ 
Costs of admin/support/service personnel £ 
Cost of HR personnel time
(payroll, benefits, orientation)
£ 
Cost of formal training programs £ 
Cost of third party trainer time £ 
Cost of informal training materials £ 
Cost of internal company trainer time £ 
Cost of sales leads
(advertising, promotion, lead generation personnel)
£ 
Cost of management time
(Train, manage, motivate; your time plus the time of other managers/employees involved)
£ 

3. Termination Costs/Lost Opportunities

Cost of management time to terminate employee
(your time plus the time of other managers/employees involved)
£ 
Cost of administration time to terminate employee
(payroll, HR, benefits administration etc.)
£ 
Severance pay £ 
Performance differential/Cost of lost sales
(difference in gross margin between average salesperson's results and terminated salesperson's results for employment period)
£ 
Vacancy costs
(Gross margin on sales lost while position is unfilled)
£ 
Other costs
(misc. costs we may have missed)
£ 
A failed sales person costs your company  £ 

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