What is the real cost of a mis-hire?
You should understand this cost before you start building your own inhouse team by hiring full time employees.
This is the table
|Study comprised of 52 casesNumber of years in job: 1.6Base Compensation: $102,692||Average Statistics|
|Cost in hiring||$31,643|
|Compensation (all years)||$255,452|
|Cost of maintaining person in job||$67,653|
|Cost of mistakes, failures; wasted and missed business opportunities**||$1,232,092**|
|Cost of disruption||$242,356|
|Sum of costs||$1,863,158|
|Value of contribution||$360.721|
|Net average cost of miss-hire||$1,502,436|
The cost of a miss-hire is 14.6 times base compensation which is incredibly expensive.
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