Calculating the time and money spent on your hiring process, recruitment marketing costs, and revenue per employee provides insight into how much hiring the wrong person can hurt your business. These results affect your bottom line.

Hiring the wrong person elevates your expenses related to hiring, onboarding, and training replacements. These losses quickly add up and significantly hurt your business.

Fortunately, you can partner with a staffing agency that specializes in agricultural placement to reduce your hiring expenses. If the placement turns out not to be a good fit, you can request a replacement at no charge.

Discover how much hiring the wrong person can hurt your business.

Time Spent on Hiring Activities

You can calculate the amount of time spent on hiring activities to determine how much money is lost by hiring the wrong person:

• Identify the members of your hiring team. For instance, you might have the department head, two HR professionals, and the CEO involved in the hiring process.
• Determine how many hours per week each team member spends on hiring-related tasks. For instance, an HR professional could spend 30 hours per week on hiring activities.
• Multiply the number of hours spent each week on hiring-related tasks by the professional’s hourly rate to determine the real-time cost. For instance, an HR professional who spends 30 hours per week on hiring activities and earns $30 per hour costs $900 per week on hiring (30 x $30 = $900).

Revenue Per Employee

You can calculate the revenue per employee to determine how much money is lost by hiring the wrong person:

• Check your company’s year-end financial report for the revenue per employee.
• Multiply the revenue per employee by the average profit contribution per employee to estimate the profit margin per hire.
• For instance, if the revenue per employee is $250,000 and the average profit contribution per employee is 45%, each employee brings in approximately $112,500.

You can take this calculation a step further by comparing the profit contribution of an average performer to that of a high performer:

• For instance, an employee in the top 25% of the talent pool typically brings in at least 25% more profit than an average employee.
• Therefore, if an average employee brings in $112,500 in profit, a high performer would bring in $140,625.
• As a result, you are losing more than $28,125 by hiring an average-performing employee rather than a high-performing employee.

Recruitment Marketing Costs

You can calculate the recruitment marketing costs to determine how much money is lost by hiring the wrong person:

• For instance, you might spend an average of $300 per month to advertise open roles.
• If you have 10 open roles per month, you spend $3,000 on job postings ($300 x 10 = $3,000)
• These numbers can vary depending on how often the wrong person is hired and the job is advertised again.

Partner with an Agricultural Recruitment Agency

Work with Morris Bixby Group for help with hiring the right people for your agricultural business. Start the process today.