The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses.
Understanding the true cost of a bad hire can be a very complicated prospect. In most cases even veteran HR professionals and hiring managers drastically underestimate the financial cost, they estimate it is in the thousands. Some studies show that the price of a new hire can be as much as 30% of their first year’s salary. Other estimates can get as high as $240,000 in the first 18 months with a “bad” new hire. This really shows just how detrimental a bad hire can be in any company, and it takes most hiring professional by complete surprise, blowing their assumed “thousands” out of the water.
When you ask a CEO or sales manager about the cost of a bad sales hire the first thing they are likely to bring up is the actual cost of hiring. I.E. on-boarding, training and benefits, and while this may be very expensive most companies seem to leave it at that.
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