The column executive briefing

Issue #2

Hiring the wrong person can be costly for an organization, both from a monetary standpoint as well as an emotional one. A wrong hiring choice oftentimes impacts employee morale and even may ultimately affect the decision-maker’s career. According to some sources, as many as 50% of all managerial hires turn out to be mis-hires. This term is defined as a hire that does not perform up to required performance standards.

Brad Smart, PhD, author of TopGrading and best known for his work in TopGrading the GE and Allied Signal organizations conducted a study wherein the average costs associated with one mis-hire were determined to be an astounding 24 times greater than the mis-hire’s base compensation. The largest single cost, the wasted or lost business opportunities, far outweighed the investment in attracting someone and their compensation related costs.

By taking a committed and proactive approach in hiring the “A” player …”first,” — you will help your company in the long-run save on compensation related costs, overhead, severance, wasted business opportunities and disruption, while at the same time driving top and bottom-line profitability through increased productivity!

In future briefings we will discuss some of the various ways in which you can dramatically increase your chances of a successful senior executive hire