BETTER TALENT IS WORTH FIGHTING FOR. At senior levels of an organization, the ability to adapt, to make decisions quickly in situations of high uncertainty, and to steer through wrenching change is critical. But at a time when the need for superior talent is increasing, big US companies are finding it difficult to attract and retain good people. Executives and experts point to a severe and worsening shortage of the people needed to run divisions and manage critical functions, let alone lead companies. Everyone knows organizations where key jobs go begging, business objectives languish, and compensation packages skyrocket… [Read the Full Article]
There are innumerable estimates and theories regarding the real costs of a mis-hire – a hire that does not achieve key business goals, is terminated for performance reasons, resigns etc. I came across this work sheet developed by Sales Benchmark Index which draws on work done by Topgrading.
I do not agree with all the inclusions – i.e., “Maintaining the person in job” as those costs would be incurred for a highly successful hire. The cost of “Mistakes/Failures…” is also difficult to calculate. I think it is more interesting to think of the opportunity costs incurred. Research by McKinsey indicates that:
High performers deliver significantly better results than do average performers ―
- 67% increased revenue in sales roles,
- 49% increased profit in general management roles, and
- 40% increased productivity in operations roles.
Hence the opportunity cost of a mis-hire in a sales role is 67% etc.
I hope you find the worksheet interesting and of valud.
Access the worksheet….
The war for management talent is intensifying dramatically. Last year, McKinsey updated a 1997 study in which researchers surveyed 6,900 managers (including 4,500 senior managers and corporate officers) at 56 large and midsize US companies. The update found that 89 percent of those surveyed thought it is more difficult to attract talented people now than it was three years ago, and 90 percent thought it is now more difficult to retain them. Just 7 percent of the survey’s respondents strongly agreed that their companies had enough talented managers to pursue all or most promising business opportunities… [Read the Full Article]