New Producer Hiring: The Real Cost of a Mistake

“You need to find out if they have the intelligence, mental toughness, grit, social skills, and drive to make it as a producer. If they don't and you hire them, you just threw $50,000 to $200,000 down the drain, not to mention a whole lot of wasted time.” – Randy Schwantz

A stack of $100 made from $1 bills is just under ½ an inch thick.

If a hiring mistake costs around $75,000 (most agency owners would say that is a low estimate), then a mistake is like taking a 4” stack of $100 bills and throwing it to the wind.

It is equivalent to a new Cadillac Escalade or Lexus or Range Rover.  It’s like buying that new car and rolling it over the cliff.

But, it gets worse.

Not only did you suffer the financial loss, you suffered the opportunity cost associated with having made a great hire. 

In other words, had this newbie made it, they would have created approximately $500,000 of wealth for agency owners in 3 years.  They would be producing approximately $60,000 profit to the bottom line each year.

Add it all up and it’s some serious money, which is why you might want to take the hiring process seriously.

If you're wondering where to start… read our book GRIT on how to find, hire, and develop Producers.