Calculating the Value of Your Employee

Calculating the Value of Your Employee Direct Recruiters - Tuesday, November 15, 2005 A recent study conducted by top business graduate schools and reported by Bob Marshall, contributing writer for the Fordyce Letter, reports that in the U.S., an employee’s value to their company is usually set at five times their salary. So, for example, if your job opening calls for a salary of $50K, then the value that person should bring to your company is $250K per year.
Home Article 502 : ASURYS Joins AIM Global Article 506 : UK Eases RFID Regulations Article 507 : RFID Regulatory Database Available Article 508 : EPC Data Sharing Essential Article 509 : Guest Editorial: RFID Is A Great Technology -- But It's Not Perfect Article 510 : RFID: From Chips to Dips to Trips Article 511 : RFID Joins NASCAR Article 513 : AIM Global Announces Field Tour of AIDC Technologies at Port of Long Beach Article 518 : AIM Global Announces Updated RFID Emblem Article 533 : Lemelson Patents Deemed Invalid Article 534 : Biometrics Poised to Play Larger Role in Retail Article 536 : Lemelson Patents Deemed Invalid Article 558 : Education is the Key Article 559 : 2005: REG Year in Review Article 577 : RFID Insider Interview: Tom Miller Article 586 : Editorial: 2006 -- the Year of RFID Legislation? Article 589 : Editorial: 2006 -- the Year of Integration Article 590 : Editorial: 2006 -- the Year of Integration Article 591 : Lemelson Litigation Finally Laid to Rest Article 592 : Guest Editorial: Forecast 2006 Article 593 : RFID Charity Gives Children Something to Smile About Article 594 : Editorial: RFID Quality Article 595 : SupplyScape Launches Web Authentication Service Article 597 : Savi Networks Provides Real-Time Visibility to MTC's Port Facilities Article 598 : IBSS Introduces SynTrack Mobile Asset Management; Names IDENTEC as VAR	Contributed by Shel Myeroff, CPC, President Direct Recruiters, Inc. Supply Chain Recruitment Specialists A recent study conducted by top business graduate schools and reported by Bob Marshall, contributing writer for the Fordyce Letter, reports that in the U.S., an employee’s value to their company is usually set at five times their salary. So, for example, if your job opening calls for a salary of $50K, then the value that person should bring to your company is $250K per year. Now, let's look at this from another angle. While you benefit from the $250K year after year, conversely there is a monetary detriment to leaving a position open. Taking the value of this position at $250K per year and realizing there are 2080 work hours in a year, you are losing $120 per hour for each hour this position remains vacant. That's about $1,000 per workday and $5,000 per workweek. Many companies leave positions open for upwards of 100 days. Think about it! The negative impact is staggering. Is it time for your company to plug the dam? The bottom line here is the bottom line…The value of an employee has been calculated and it's significant. Spending time to keep your positions filled and avoiding long-term vacancies will only improve this ROI. For more information, contact Direct Recruiters, Inc., Human Capital Resource Specialists for Supply Chain, AIDC, RFID and Mobile Enterprise . Since 1983, DRI has been successful in building solid teams in Sales, Sales Management, Marketing and Technical Support. For more information, contact Shel Myeroff, CPC (216) 464-5570 x103 / fax (216) 464-7567/ e-mail shel@directrecruiters.com / www.directrecruiters.com.
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