Applying the Topgrading methodology could save the US economy $300 million!
As a decade long practitioner, I fully support their case-study.
– There were approximately 51 million people hired across all industries in the U.S. in 2011
– 10% of all hires in 2011 were managers, so let’s assume there were approximately 5.1 million managers hired in the U.S. in 2011
– The average salary of “managers” is approximately $59,000
– 25% of managers hired turn out to be serious mis-hires (a.k.a. “C Players”)
– The cost of mis-hiring a C Player is, very conservatively, five times their pay (5 x $59,000 = $295,000)
Cost of mis-hire studies
– 5 times salary for a sales rep
– 15 times salary for upper mid managers
– 27 times salary for highly paid presidents and CEOs
Variables required for success
Just like any other proven process, there are 2 essential non-negotiables you’ll have to ensure in order to reap these rewards.
1) You will have to have a clear company culture (here’s an example) that is actively lived.
2) You’ll have to have an effective leadership that understands the story & will be the gardian of your values & principles.
Leadership is much more than “management”, and it’s awe-inspiring when effectively practiced. These statistics talk about certain key roles, but they are relevant to any role in your organization. Can you really afford to continue to have “C Players” that detract from your potential to scale?
Call to action; how are you insuring your hiring practice
Do you have all of the fundamentals necessary for the skill & will “bullseye”?
Do you have the practice to ladder / drilldown to get the real story and subsequent hidden impacts?
Do you sell sell sell your organization until the candidates can’t wait to come in & get on-boarded? Do you even have an effective on-boarding process?
What are you going to do (differently) next in order to improve your current situation?
If you don’t have some, or any of these, I suggest you contact me for a quick 30m chat that could save your company (and peace of mind).