ROI for DMM Hire - FINAL.xlsx

	B	C	D	E	F	G	I	J	K	L	M
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2	Cost to Recruit, Hire, Train & Equip a new DMM
3	Cost to Recruit, Hire, Train & Equip a new DMM
4				Hours	Hours				KEY FIGURES
5				DMM	Supervisor	Cost			KEY FIGURES
6									Hourly wage for DMM	$ 30.00	per hour
7	Recruitment & Hiring								Hourly wage for Supervisor	$ 40.00	per hour
8		Ad Placement				$ 500.00			Payroll Tax factor	1.0765
9		Supervisor resume review			6
10		Supervisor interviewing			10				Client Billing Rate	$ 100.00	per hour
11		Reference checking			2
12			Total Hours		18	$ 720.00			Billable/Non Billable Ratio (newbie)	0.50
13									Billable/Non Billable Ratio (veteran)	0.15
14	Training
15	Hours	Reading		5					Insurance monthly cost	$ 25.00
16		Formal training sessions		8	8				Software monthly cost	$ 115.00
17		Shadowing		12	12				Payroll monthly fees	$ 20.00
18		Mentoring		20	20
19			Total Hours	45	40	$ 2,950.00
20									Calculation: ROI = Net Profit/Total Investment *100
21	Other Costs								Total Investment - Year 1	$ 26,349.00
22	headshot, business cards, name tags					$ 300.00			Total Additional Profit - Year 1	$ 16,231.00
23	Office Supplies					$ 50.00			Return on Investment - Year 1	62%
24	Laptop					$ 1,200.00
25	Scanner					$ 500.00
26
27	Total Onboarding Expense					$ 6,220.00
28
29
30	Return on Investment (ROI)						Breakeven Analysis
31	Return on Investment (ROI)						Breakeven Analysis
32			Months 1-2	Months 3-6	Months 7-9	Months 10-12	Month	Bill Hrs	Expense	Profit	Balance
33	Billable DMM Hrs/mo		12	20	30	60	1	0	6,380.00		(6,380.00)
34	Non-Billable Work Hrs/mo		6	10	5	9	2	12	999.67	200.33	(6,179.67)
35	Supervisor Hrs/mo		6	10	5	9	3	20	1,559.45	440.55	(5,739.12)
36							4	20	1,559.45	440.55	(5,298.57)
37	Income		$ 1,200.00	$ 2,000.00	$ 3,000.00	$ 6,000.00	5	20	1,559.45	440.55	(4,858.02)
38							6	20	1,559.45	440.55	(4,417.47)
39	Expenses						7	30	1,467.95	1,532.05	(2,885.42)
40	DMM Salary		$ 581.31	$ 968.85	$ 1,114.18	$ 2,228.36	8	30	1,467.95	1,532.05	(1,353.37)
41	Supervisor Salary		$ 258.36	$ 430.60	$ 193.77	$ 387.54	9	30	1,467.95	1,532.05	178.69
42							10	60	2,775.90	3,224.11	3,402.79
43	Non-Salary Overhead Expenses						11	60	2,775.90	3,224.11	6,626.90
44	Insurance - monthly cost		$ 25.00	$ 25.00	$ 25.00	$ 25.00	12	60	2,775.90	3,224.11	9,851.00
45	Software - monthly cost		$ 115.00	$ 115.00	$ 115.00	$ 115.00			Payback Time: 9 months
46	Payroll Fees		$ 20.00	$ 20.00	$ 20.00	$ 20.00
47
48	Monthly Cost		$ 999.67	$ 1,559.45	$ 1,467.95	$ 2,775.90
49
50	Monthly Profit		$ 200.33	$ 440.55	$ 1,532.05	$ 3,224.11
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