st way to measure and isn't the calculation a lot more complex.
I'll use hiring a salesperson (because that is what I understand) as an example.
Cost per hire = N
Cost to On board = O
Cost of poor onboard = P
Cost of Coaching= C
Cost of Lost Production (failure to meet target)= F (Gross Profit)
Target = T (Gross Profit)
Amount over Target = A (Gross Profit)
Real Cost per hire in 1st year =R
So R= (T+A)-(N+O+P+C+F)
As an example N=5000;O=1000;P=5000;F=150000;T=300000;A=0
R= 300000-161000 = - 139000
Wheras effective evaluative recruitment would produce something like
N=20000;O=6000;;T=300000;A=60000
R= -333700
In other words a negative cost of just under 200000…