Home > Business Leadership, Employee Engagement > The Cost of Average!

The Cost of Average!

April 16th, 2009

Burning Money

I came across some interesting statistics regarding employee performance.  Take a look at the information below, as well an example below that.
-
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.

  1. Hire people who are the best fit for your company and open position.
    -
  2. Develop people based on their needs, rather than a one size fits all leadership approach.
    -
  3. 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

-
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 -
  • 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 -
  • 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-
  • Total Loss in production of $790,000

It doesn’t pay to settle for average!
-


-
*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.

-

Jason Kiesau Business Leadership, Employee Engagement

  1. No comments yet.
  1. No trackbacks yet.