Suppose that 50 Million professionals employed in the United States with average salary is 70,000 per year. Suppose that they change jobs 3 times in their career and that the cost of placement is 30% of salary, or $21,000 dollars per placement. This equals 3 Trillion Dollars in Churn costs
The human resources department is responsible for matching a knowledge surplus to a knowledge deficit through the hiring process. Fortunately for them, there is no knowledge inventory in society and managers don’t necessarily know what they want.
I read many articles with rants like “all this social network stuff is cool – but show us the money”. Innovation Economics offers a way to see new markets and new businesses that are currently hidden by “the old way” of doing things. This article is part of a series called ‘Business Plans of [...]