Estimate your financial exposure.
Adjust the inputs below. The calculator starts at zero and displays an estimate once you enter your information.
All amounts and results are shown in Canadian dollars.
$0
Annual base salary before commissions.
0 months
Months before coaching, correcting or replacing.
$0
Expected annual target for the role or territory.
0%
Actual percentage of the sales target achieved.
0%
Net margin used to estimate lost profit.
Lost sales, lost profit and replacement costs become easier to understand when they are quantified.
ESTIMATED COST
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Adjust the inputs to generate your estimate.
ESTIMATED LOST NET PROFIT
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Adjust the inputs to calculate estimated lost profit.
YOUR PSV RATIO
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Your estimated cost compared with a PSV assessment
Estimated direct costs—
Estimated lost sales—
Estimated lost net profit—
Replacement and ramp-up—
The assessment will appear after the required inputs are completed.
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Methodology
This calculator draws on observations published by Harvard Business Review concerning visible and hidden costs associated with hiring mistakes, underperformance and employee replacement. Results are illustrative estimates and should be adapted to your organization.
Direct costsProrated salary, estimated benefits, replacement and training.
Lost salesAnnual target × time before intervention × performance gap.
Lost net profitLost sales × net profit margin.
Total estimated costDirect costs + estimated lost net profit.