What’s Your Cost of Sales Turnover?

Find out how much money your company loses from sales turnover

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Your Cost-per-Hire Results

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Cost of Sales Turnover Calculator

Sales Turnover Cost Calculator
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Your Cost of Sales Turnover

Cost of Sales Turnover

Potential Per Hire Savings using Hire Velocity

Your Results at a Glance

Your results show where you’re spending the most and highlight areas for improvement. These figures help you see where you’re spending the most during your recruitment efforts and how you can improve the process.
Here’s a breakdown of the key categories:

  • Direct Costs: These are the visible, often tangible costs associated with hiring, including job advertising, background checks, recruiter fees, and onboarding expenses. These are relatively easy to measure and control.
  • Indirect Costs: These are the hidden costs that can be harder to calculate but are equally impactful. Indirect costs can include lost productivity, knowledge gaps left by departing employees, the time spent re-engaging with candidates, and the disruptions caused to teams while positions remain unfilled.

While indirect costs are often overlooked, they can have a substantial effect on your organization’s performance. Reducing these costs often involves refining your recruitment process and aligning better with both your team and candidate needs.

Why Your Cost per Hire Matters

High recruitment costs can directly impact your financial performance and hinder overall business growth. Key drivers of increased hiring expenses include:

  • Lengthy time-to-fill
  • Poor candidate alignment
  • High turnover rates
  • Inefficient processes

By streamlining your hiring processes, companies can reduce costs by up to 30%, all while enhancing candidate quality.

How to Reduce Your Cost per Hire

If you’re aiming to lower your cost per hire while attracting top-tier talent, the following strategies will help you optimize your recruitment efforts:

  1. Refine Your Job Descriptions
    Clear, precise job descriptions attract the right candidates and improve your chances of identifying qualified applicants. By focusing on the specific skills and experiences required, you can reduce the time spent reviewing unsuitable resumes and interviewing unqualified candidates.
  2. Leverage Recruitment Marketing
    Effective recruitment marketing can help you engage top talent early in the process. By promoting your employer brand and connecting with candidates before they apply, you can improve the quality of applicants and reduce the time spent sourcing talent. Tools such as social media, online advertisements, and employer branding campaigns can help attract the right audience.
  3. Outsource Recruitment with RPO
    Recruitment Process Outsourcing (RPO) offers the expertise of specialized recruitment teams to streamline your hiring process. Partnering with an RPO provider such as Hire Velocity allows you to reduce the burden on your internal team, speed up the hiring process, and lower recruitment costs. With the right RPO provider, you gain access to experienced professionals, advanced tools, and a faster path to top candidates.
  4. Utilize Technology to Streamline Hiring
    Implementing recruitment technologies such as an applicant tracking system (ATS) can reduce the manual tasks associated with recruitment. Automating time-consuming activities such as resume screening, interview scheduling, and candidate communication will not only save time but also improve cost efficiency.

Understanding Your Results: What Do They Mean?

Your results provide a clear, data-driven view of the financial impact your organization faces when sales employees leave. By breaking down these costs into tangible and intangible categories, you can pinpoint areas where strategic improvements can lead to significant cost savings and enhanced team performance.

Here’s an overview of the key categories:

Direct Costs

These are the immediate, measurable expenses tied to replacing a sales employee. This includes recruitment fees, onboarding, training, and compensation packages for new hires. These costs represent a direct financial burden on your business.

Indirect Costs

While more difficult to measure, these costs often have an even greater long-term impact. They include lost sales opportunities, dips in productivity, and the added pressure placed on remaining team members. This can lead to broader inefficiencies that extend beyond just the cost of replacement.

By understanding both direct and indirect costs in detail, you can identify key areas where improvements can be made to streamline processes and reduce overall turnover expenses. Acting on these insights can help drive more efficient hiring, better team retention, and ultimately, greater profitability for your business.

Why the Cost of Sales Turnover Matters

Sales turnover is a critical issue for organizations that depend on a strong and consistent sales team to drive revenue. High sales turnover can have significant financial consequences, and many organizations are unaware of the full extent of these costs until they conduct an analysis.

Here are the key reasons why understanding and managing your sales turnover cost is essential:

Revenue Impact

Salespeople are key revenue generators for your organization, and when they leave, so do their contributions. High turnover often results in lost revenue and a decline in overall sales performance.

High Replacement Costs

The hiring and training process for new salespeople incurs substantial costs. Recruitment fees, onboarding, and the time it takes for new hires to reach full productivity are all financial burdens associated with high turnover.

Team Disruption

When valuable sales team members depart, their responsibilities are typically redistributed, which can lead to overburdened employees who may struggle to perform at full capacity. This disrupts team dynamics and impacts morale.

Brand Damage

A high turnover rate can tarnish your organization's reputation, making it more difficult to attract top talent. Salespeople are less likely to join a company with a reputation for high turnover, which can affect your ability to recruit high-performing individuals.
By measuring and understanding these costs, your organization can take proactive steps to reduce turnover and protect both revenue and your reputation.

What Goes into Your Cost Per Hire?

Hiring costs extend beyond salaries. They include everything from job advertising and recruitment technology to interview expenses and onboarding. Key factors include:

Recruitment Costs

Job postings, career fairs, social media ads, and sourcing support

Technology Investments

ATS, interview scheduling, recruitment automation

Hiring Expenses

Recruiter salaries, referral bonuses, RPO services

Onboarding & Training

Orientation, learning management systems, relocation expenses
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How to Reduce Your Sales Turnover Costs

Minimizing sales turnover is essential for maintaining a high-performing team and controlling costs. Here are key strategies to enhance retention and drive long-term success:

Focus on Employee Engagement and Satisfaction

Sales teams that feel supported and valued are more likely to stay. Creating a positive work environment, offering recognition, and ensuring your salespeople feel appreciated are key to reducing turnover.

Strengthen Your Hiring Process

A robust hiring process is essential for ensuring candidates are not only a good fit for the role but also for the company culture. Implementing personality assessments, behavioral interviews, and comprehensive reference checks can help you hire individuals who are more likely to succeed and stay long-term.

Offer Competitive Compensation and Benefits

A competitive salary is fundamental, but your compensation package should extend beyond this. Consider offering performance-based bonuses, stock options, health benefits, and wellness programs to keep your team motivated and loyal.

Provide Ongoing Training and Development

Sales professionals seek continuous growth. By offering regular opportunities for professional development, you demonstrate your commitment to their success. This not only enhances performance but also improves retention by providing career progression, which in turn reduces turnover.

Implement a Comprehensive Onboarding Process

Effective onboarding plays a crucial role in employee retention. Ensuring that new hires feel welcomed, supported, and equipped with the tools and knowledge necessary to succeed from day one is critical. A well-structured onboarding process provides clarity, sets expectations, and boosts confidence, significantly reducing the likelihood of early-stage attrition.

A Full-Service Talent Acquisition and Professional Search Firm

At Hire Velocity, we specialize in providing top-tier talent strategy and recruitment process outsourcing services designed to transform your business. With our expertise in talent acquisition strategy, we help you find exceptional individuals who can steer your company toward long-term sustainable success. See what we offer.

Recruitment Process Outsourcing (RPO)

Custom recruiting strategy and soutions to attract and hire quality employees.

Our RPO services provide a scalable and flexible solution for your recruiting needs. We can manage the entire recruitment lifecycle or simply a portion of it. Our services include everything from sourcing and screening to onboarding and beyond. These services ensure you can focus on your core business activities.

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Professional Search

Solutions that identify exceptional talent and align with your objectives and goals.

For specialized or executive-level positions, our professional search services deliver targeted results. We utilize advanced search techniques and industry knowledge. That's how we find candidates who meet the job requirements and fit seamlessly into your company culture.

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Talent Advisory

Marketing services that reinforce employer brand while attracting top talent.

Our talent advisory services offer strategic insights and guidance. Together we'll work to optimize your recruiting processes. We help you develop a talent acquisition strategy that aligns with your business goals and ensures long-term success.

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Managed Service Provider (MSP)

Recruitment process management by a third-party firm.

We streamline the hiring process by leveraging specialized expertise and technology to identify top talent efficiently. This reduces the administrative burden on engineering teams, allowing you to focus on core projects and innovation.

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What Happens Next?

Your results are just the beginning.
We’ll help you turn insights into smarter, more efficient hiring decisions.

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Start Reducing Your Sales Turnover Costs Today

Take the first step towards improving your sales team’s stability and performance. Hire Velocity’s team of experts is here to help you optimize your recruitment strategy, minimize sales turnover, and lower your hiring expenses.

Contact us today to learn more about how we can help you reduce your cost of sales turnover and improve your team’s performance.

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Hire Velocity by the Numbers

new employees placed and hired by clients in the last 12 months

job boards utilized for candidate attraction

days average time-to-fill for RPO engagements

What Our Clients Are Saying:

In 18 days, we have hired 15 people, and we have an additional 6 people pending pre-employment with offers accepted. This volume is amazing! You are the best recruiters we have ever had for our region. I really appreciate everything that you have done and continue to help with. A huge thank you!

HR Manager, Southern Region

Environmental Services Firm
It was a pleasure working with the team at Hire Velocity. They quickly understood our needs regarding skill set and cultural fit. Professional and timely, they provided quality candidates throughout the process. They managed scheduling and communication seamlessly, from the initial phone screen to the offer. While we would have liked to see a greater quantity of candidates given our speed to hire, the quality of those submitted made this a manageable challenge.

Human Resources Director

Cybersecurity Consulting Firm

We’re so pleased with the results – closing positions left and right! The speed and efficiency at which Hire Velocity is working, not to mention the managers are seeing better quality candidates.

Vice President

Healthcare Technology Company
We couldn’t be more pleased with the Hire Velocity team’s recruiting efforts, attention to detail, quality of candidates, response times, availability, etc. Sourcing and recruiting is a process and must be executed correctly to achieve the desired results of hiring A-players. We have had a fantastic experience thus far working with the Hire Velocity team and are excited to continue the relationship.

Vice President of Human Resources

Financial Services Firm

I have utilized recruiting firms over the years; however, the experience with Hire Velocity has been exceptional. I was impressed with the initial approach taken to understand our company, candidate profile and challenges. The attention to detail to our candidate profile is very evident based on the interview process. It is clear that you effectively highlighted our strengths as an organization, and the candidates are excited about the possibility of being selected to join our team. Thank you for all of your hard work and the professionalism you’ve demonstrated during the entire process.

Regional Manager

Global Chemicals Company

My experience with Hire Velocity has been exceptional. Their team quickly understood our hiring needs and consistently delivered high-quality candidates. They are responsive, proactive, and have streamlined our recruitment process, saving us time and resources. With their expertise and dedication, they’ve significantly improved our hiring efforts. I highly recommend Hire Velocity for any organization looking to enhance their recruitment strategy.

Talent Acquisition Manager

Environmental Services Company
The intake process with Hire Velocity was thorough and well-organized. The team was incredibly responsive and asked insightful questions to understand our needs. Although the first round of candidates wasn’t the right fit, I provided quick feedback, and they adjusted promptly. The final batch of candidates was strong, and I successfully made an offer to one, which was accepted.

Franchise Owner

Healthcare Services Firm

My experience with Hire Velocity has been nothing short of phenomenal. Their recruiter demonstrated unwavering dedication, professionalism, and commitment to meeting my recruitment goals. Thanks to their tireless efforts, we now have an excellent pool of drivers. Their expertise and proactive approach have made a significant impact, and I’m truly grateful for their support and guidance throughout the process.

Owner

Transportation & Logistics Company
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