The Equation

Find out how much money your company is losing by keeping a position open for any amount of time.


To find the average yearly value of each employee...

ANNUAL COMPANY'S LOCATION REVENUE  / TOTAL NUMBER EMPLOYEES

=

AVERAGE YEARLY VALUE OF EACH EMPLOYEE 

To find the daily cost of an open position:

AVERAGE YEARLY VALUE / 365 DAYS 

=

DAILY COST


Scenario

Let's work with some real numbers. In this example we will assume that your company revenue is $18 million and the company has 100 employees.

$18,000,000 / 100 employees =  $180,000 average yearly value of each employee

Now why don't we figure out how much you are losing per day while this position is open... 

$180,000/ 365 days = $493.15

While keeping a position open might only appear to be a nuisance, it is actually a very expensive decision, costing your company thousands of dollars. 


Why Does it hurt?

  • Cost of on-boarding
  • Decreased employee morale
  • Increased stress on employees
  • Decreased productivity