Flawed Hiring Process

What are the costs of mistakes in your organization's hiring process? A quick look at the math may surprise you.

Hiring: Let's suppose you work in a company with 100 employees where the average salary is $50,000 per year. Traditional hiring methods will produce a typical range of performance--the 80:20 syndrome.  Therefore, for every five new employees your company hires, there will only be one top performer. In turn, there will be four mis-hires who can potentially cost your company as much as  $500,000 (4 employees x $50,000 x 2.5). Using a traditional hiring process as a method for acquiring top performers exposes the company to a significant acquisition cost.   

Downsizing: Let's suppose that your company needs to layoff 20% of its 100 employees. Some quick math shows you will save the company $1 Million in payroll. The layoff was done by seniority, so among the employees laid off, there were 4 top performers. Those top performers were acquired recently at a cost of $2 Million (4 top performers x $500K each). Did you really "save" money by laying off the top performers? Of course not. But, here's the really bad news, 12 to 18 months later you most likely will have to repeat the process again when the next economic cycle requires you to grow back up to 100 employees. To rehire a new set of high performance employees will cost your organization another $2 Million.

Find and Retain High Performance Employees

The coming and going of employees is a necessity of business today. However, the management of this process is deeply flawed and costs companies billions of dollars each year. Can your company afford to spend this kind of money to hire and retain top performers? Why not let Tidemark help you eliminate the problem?