The Cost of Average!
April 16th, 2009

I came across some interesting statistics regarding employee performance. Take a look at the information below, as well an example below that.
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The concept of employee engagement is so intangible it is hard to put into numbers and measure. This information does that and really shines a light on the importance that organizations become more and more intentional with their people strategies.
- Hire people who are the best fit for your company and open position.
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- Develop people based on their needs, rather than a one size fits all leadership approach.
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- Promote based on job match, rather than tactical success.
Take a look at this:
Unskilled / Semi-skilled Workers*
- Average workers output = 19% more than Non-producers
- Superior workers output = 19% more than Average
- Superior workers output = 38% more than Non-producers
Skilled Workers*
- Average workers output = 32% more than Non-producers
- Superior workers output = 32% more than Average
- Superior workers output = 64% more than Non-producers
Management / Professional Workers*
- Average workers output = 48% more than Non-producers
- Superior workers output = 48% more than Average
- Superior workers output = 96% more than Non-producers
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What if this were your organization? -
- 50 Unskilled/Semiskilled Workers who are Average Performers
- Average Salary of $20,000 per year = $1,000,000
- $1,000,000 x 19% = $190,000 in lost production -
- Average Salary of $20,000 per year = $1,000,000
- 25 Skilled Workers who are Average Performers
- Average Salary 0f $40,000 per year = $1,000,000
- $1,000,000 x 32% = $320,000 in lost production -
- Average Salary 0f $40,000 per year = $1,000,000
- 10 Management/Professional Workers who are Average Performers
- Average Salary of $60,000 per year = $600,000
- $600,000 x 48% = $280,000 in lost production-
- Average Salary of $60,000 per year = $600,000
- Total Loss in production of $790,000
It doesn’t pay to settle for average!
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*Source: “The validity and utility of selection methods in personnel psychology: Practical and theoretical implications of 85 years of research findings” Psychological Bulletin, Sept 1998, Vol. 124, No. 2, pp 262-274.
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