Perhaps the most expensive line item on your small business’ P&L is Salaries and Wages. The true cost of employees, however, is significantly greater than salaries and wages. Hiring and training a new employee can be very expensive, undermining profitability. Calculations will easily reach 150% of the employees’ annual compensation figure. The cost will be significantly higher (200% to 250% of annual compensation) for managerial and sales positions.
To put this into perspective, let us assume the average salary of employees in a given company is $50,000 per year. Taking the cost of turnover at 150% of salary, the cost of turnover is then $75,000 per employee who leaves the company. For the mid-sized company of 1,000 employees who has a 10% annual rate of turnover, the annual cost of turnover is $7.5 million!
That number scales down as well as up, depending on the number of employees.
Do you know any CEO who would not want to add $7.5 million to their revenue? And, by the way, most of that figure would be carried over to the profit line as well.
We can give your company increased flexibility and scalability by providing both management and sales staff according to your needs, without the delay, pain and costs associated with hiring (and firing) internal staff - especially when you're not sure that you want to keep them for a longer period of time.
If you have existing staff that needs to be "trained up" to increase their effectiveness and contribution to profit, we can do that as well.