Statistics show that your personal net worth to your company, in personal production, is net worth 5 times your annual salary.
Assume you are currently earning $100,000 per year, in salary and bonus…that translate into personal production of 500,000 per year divided by 2,080 (52 weeks 40 hours per week) equals $240.00 per hour.
Assume you advertise a sales position that pays a base salary of $40,000 per annum plus bonus of $30,000 at quota for total annual compensation of $90,000. You receive 200 resumes.
LET’S TAKE SOME AVERAGE TIMES:
Compose, correct and amend the ad…..20 minutes
Qualify 200 resumes at an average of 5 minutes each…1000 minutes
Delete 100 resumes
Screen 100 resumes at an average of 10 minutes each…1000 minutes
Delete 70 resumes
Qualify 30 resumes at an average of 20 minutes each…600 minutes
Delete 15 resumes
Check out 15 individuals at an average of 30 minutes each…450 minutes
Delete 10 resumes
You have not interviewed anyone as yet, but you have invested 3.070 minutes, divided by 60 (60 minutes pre hour) equals 57.8 hours, times $240.00 (your worth to the company) equals $12,280. This figure does not include the cost of the ad, either.
So you have invested $12,280.00 and have not even interviewed anyone as yet.
Assume that out of the 5 remaining candidates, you invite all 5 for personal interviews. You spend 2 hours with each. Out of the 5, you second interview 2 candidates. Out of 200 resumes, you have narrowed it down to 2 individuals.
So far, besides the $12,280.00, you’ve invested another $2,400.00 (5 interview at 2 hours each =10 hours x $240.00 per hour – $2,400.00) Add the $12,280 pus $2,400.00 and we come up with a grand total of $14,680.00 without hiring anyone.
You know these individuals are qualified…but will they accept the job if offered, and will they move to your location? The individuals I recommend will accept the job in the area desired and at the money offered.
Conversely, my fee on a $40,000.00 base salary is $10,000.00. A saving outright, or $4,680! — Not to mention the time involved. Instead of a least 1-2 months it will take you to search, interview and hire, I can usually deliver in a few weeks. More importantly, you will see candidates through me that aren’t looking in the paper for jobs. These are top performers; busy making sales for their employers and don’t have time to be looking for another position (especially in the newspaper).