Adaptability – Our Prime Directive
SELLING VALUE
–A Thirteen-Part Series–
Part Nine
The Value Proposition
ETV = AEW + IECS – RSC
by
Bob Marshall
October 21st, 2025
PART NINE
The Value Proposition – ETV = AEW + IECS – RSC
When recruiters talk to Hiring Managers, one of the most powerful tools we can bring to the table is a clear value proposition — not just about the candidates we submit, but about the recruitment service itself.
So how do we quantify that value? Here’s a simple equation I recommend using in your recruitment life to help Hiring Managers make smarter, more data-driven decisions:
ETV = AEW + IECS – RSC
Where:
ETV = Employee’s True Value
AEW = Approximate Employee Worth
IECS = Internal Employee Costs Saved
RSC = Recruiter Service Charge (your fee)
In other words:
The True Value of an Employee equals their approximate worth to the company, plus the internal costs saved by using your services, minus your one-time recruiting fee.
Once you assign rough estimates or real numbers to each part of the equation, you’ll have a clear and compelling story to tell. If the final number (ETV) is positive, the hire likely makes strategic and financial sense.
✅ When ETV is high, the value of your placement is obvious.
⚠️ When ETV is low or negative, it might be time to rethink the hire — or help your client reframe expectations.
Quick Example:
Let’s say the AEW of a sales hire is $250,000/year in new revenue, IECS is $20,000 saved in internal sourcing time, and your RSC is $30,000.
The ETV would be:
$250,000 + $20,000 – $30,000 = $240,000
That’s a $240K net value to the business — a strong case for moving forward.
This equation isn’t about perfect math — it’s about shifting the hiring conversation from cost to value.
Coming Up:
Next week in Part Ten, we’ll break down the first part of the equation:
Approximate Employee Worth (AEW) — and how to estimate it with Hiring Managers.
My Best,
Bob
Bob Marshall began his recruiting career over 45 years ago at MR in Reno, NV. In 1986 he established The Bob Marshall Group, International, where he has trained recruiters throughout the United States and also in the United Kingdom, Malta and Cyprus. With a dedication to executive recruiting, he continues to offer his proven training systems to individuals, firms, and private corporations both domestic and in select international territories. To learn more about his activities and descriptions of his products and services, contact him directly @770-898-5550/470-456-0386(cell); bob@themarshallplan.org; or visit his website @ www.TheMarshallPlan.org.
Bob Marshall
President
TBMG, International
247 Bryans Drive, Suite 100
McDonough, GA 30252-2513
770-898-5550
bob@themarshallplan.org
www.TheMarshallPlan.org