The cost of replacing an employee is “higher than it seems,” Marketplace recently reported. Citing studies, its article states, “the cost of replacing an employee can be 1.5 to sometimes three times the position’s annual salary.”
Those are just the hard costs of physically replacing an employee.
The softer costs are perhaps harder to measure, but arguably more expensive. With each departed employee goes his or her learning curve—the time he or she spent to learn how to do the job well.
The level of responsibilities in the knowledge economy, combined with headcount pressure, means fewer people do more work. As a result, the learning curve—and the cost of that learning curve—gets steeper each year.
Hiring and managing PR agencies is similar—the model of professional services, whether fixed-fee or billable hour, is to provide expertise, for a given period of time, at a set cost.
However, PR agencies are—or should be—familiar with aspects of the particular business to help the client perform with greater efficiency.