The smartest CEOs I know use a tool called The Bad Hire Cost Estimator. Go here to get a template. It will help you understand how much the wrong sales leader is costing you. This tool is to a sales leader hiring decision what a scale is to a weight loss program. Step on the scale and learn why your pants don’t fit anymore. Use this template and learn the truth about the accuracy of your sales leader hiring decision.
The infographic below illustrates an example of The Bad Hire Cost Estimator in action. The use case assumptions are as follows:
- Position: Chief Sales Officer
- Executive search fee: 33% of first year compensation
- Total Annual Comp: $500,000
- Salary: $250,000
- Bonus: $250,000
- Quota Attainment: 50%
- Time in the Job: 18 months
- Severance: 6 month’s salary
- Mistakes: Ran off 10 top producing sales reps each producing $2 million in revenue
(Click infographic to enlarge.)
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Note: The worksheet template provided is blank. Plug in your assumptions. Use this for all roles. In case you missed it, the template can be found here.
There is no decision more important than a hiring decision. Notre Dame lost to Alabama because Alabama had a better coach and better players.
Do you have a championship team on the field?
