The Cost of a Mis-Hire
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The Cost of a Mis-Hire
There have been a lot of articles written about the cost of employing the wrong person. Some estimates put it at 15 times the base salary of the mis hired person. When you think about the costs of rehiring and the unsuitable people they may have hired, the impact on the culture of the business and the collateral damage done it is not hard to justify that figure. I don’t think it is just the costs of hiring someone who is badly unsuitable that we need to think about but the hidden costs of hiring and retaining someone who is not quite of the right standard we should be just as concerned about.
During lockdown I got a call from a client who told me that he was shipping just as much as he had previously but with 50% of the team, the rest being furloughed. Furthermore, he said the atmosphere was better and he had fewer ‘HR problems’. Back in 2001 Netflix had to lay off 30% of their staff and they noticed the same phenomena. The atmosphere was better, the throughput actually improved and team spirit soared. Why? Australian Professor Will Pelps had conducted a fascinating study about contagion in the workplace and found that just one team member’s bad behaviour brought down the achievement levels of the rest of the team, even when the rest of the team were brilliant. Netflix now refer to this as ‘Talent Density’ If you have ever exited a team member and noticed how things immediately picked up on their departure you will be familiar with the scenario. Bad behaviour and negative vibes are covertly contagious and will diminish the performance of even the best of teams. That is the real cost of employing less than A players. They bring everyone down to their level. That is why being able to hire A players and only A players is so fundamentally important.
Click here for details on my free webinar on the subject. October 28th at 10 a.m.
Doing good by doing well.
If you would like some help or just someone to talk to please reach out. Coming out of lockdown will be far more challenging than going in was. I know I can help and I am committed to do so.
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