August, 21, 2017
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Rule

Every management position should be structured to enable a new employee to improve your profits by at least five times their compensation in their first 12 months on the job. This is termed The Contribution Factor.  If this isn't practical, the position needs to be revised.

Stated another way, every week a management position remains vacant your profits from the position decrease by at least 20% of the compensation you expect to pay. 

This equation should dictate your decision on how long you can afford to have a management position vacant. That decision, in turn, can guide you in deciding on which resources to use to fill the management position and how much to invest.

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