My Open Jobs, LLC / Recruiting Bytes

#22: Recruiting cost is an investment…not an expense

recruitingbyteslogoThink of the money you spend on recruiting as an investment, just the same as buying shares of stock. Based on the anticipated return, you need to determine how much you are prepared to invest.

If it cost you $400 to hire someone that will generate $400 a day in revenue, is that a good deal?Of Course it is!Now, what if it cost you $2,000 to hire this same person? Is that a good deal? Yes! It is

If you operate on a Gross Profit Margin (before fixed overhead) of 30%, this Technician will generate $120 a day in Gross Profit. At that rate, it will only take 17 days on the job for you to get your Return on Investment (ROI). As with any aspect of your business or your personal financial investments, it’s all about ROI. If you invest a dollar and get two dollars back, it’s a great deal.

If a good Technician will generate $100,000 a year in revenue and $30,000 in Gross Profit…Your $2,000 Investment will give you a Return of 1,500%!

If there was a stock that gave you that kind of return, you’d buy every share you could get your hands on!

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