Jun 11 2024 42 mins
Healthy businesses have an established business model in which most new incremental hires produce profit for the business. Payroll expense can be viewed as an investment that yields a profitable ROI. Usually a hiring decision boils down to a question of how much more revenue do you need to sell in order to afford a new hire. This episode helps answer the question of whether you can afford to hire an employee.
More specifically, this episode includes:
- Viewing Employees as Profit Centers
- Return on Investment vs Affording a Hire
- How Much Do You Need to Sell to Afford a Hire?
- How Much Does a Salesperson Need to Sell to Pay for Themself?
- How Much Must the Business Grow to Hire a Manager?
- Labor Value Multiple
- Forecasting; Fixed & Variable Costs
Download the employee Hiring ROI Workbook using this link
Sponsored by SmartBooks. To schedule a free consultation, visit smartbooks.com.
Thanks for listening!
Host Cal Wilder can be reached at:
[email protected]
https://www.linkedin.com/in/calvinwilder/