Build the cost from the role
List the salary and recurring costs that come with the work. Separate employer costs from amounts deducted from the employee pay. Check applicable contributions with your payroll or accounting adviser.
Connect the role to an outcome
State what the role should deliver. For a sales role, look beyond headline revenue to the gross contribution available after delivery costs. For an operations role, define capacity, reliability or cost outcomes that can be measured.
Review the assumption
Compare the expected contribution with the full recurring cost and the initial recruitment cost. Test a slower ramp up. A useful hiring decision considers workload and capability as well as the arithmetic.
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