BusinessWise, LLC * 203 458-1219 * www.business-wise.com
Your Ability to Obtain & Retain Top Producing Talent
4.5 million businesses owned by baby boomers will be looking for buyers in next 15 years…there aren’t enough buyers!
85 year study of businesses reveals 84% of the employees are either poor or average producers… major opportunity costs
The lack of workforce engagement…implied costs & threat of impending talent loss
Ineffective hiring practices
BusinessWise, LLC * 203 458-1219 * www.business-wise.com
33% of the 5 million Baby Boomer businesses will transfer their businesses successfully
67% will need to sell their business
96% of the business owners believe they should have a written succession plan
87% of the business owners do not
There is less financing available for leveraged buyouts
Owners are expected to leave equity on the table…be their own banker
Major portion of personal assets…the business
BusinessWise, LLC * 203 458-1219 *
www.business-wise.com
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.
Superior Producers
Top 16%
Poor Producers
Bottom 16%
Average Producers
68%
Unskilled / Semi-skilled
‘Average’ produce 19% more than ‘Poor-producers’ ‘Superior’ produce 19% more than ‘Average’ ‘Superior’ produce 38% more than ‘Poor-producers’
Skilled
‘Average’ produce 32% more than ‘Poor-producers’ ‘Superior’ produce 32% more than ‘Average’ ‘Superior’ produce 64% more than ‘Poor-producers’
Management / Professional
‘Average’ produce 48% more than ‘Poor-producers’ ‘Superior’ produce 48% more than ‘Average’ ‘Superior’ produce 96% more than ‘Poor-producers’
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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.
50 Unskilled / Semi-skilled Workers
25 Skilled Workers
10 Managers
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7
X 0.19 =
Average
Salary?
Your cost per
„Average‟
# in this
category
X = Unskilled
Skilled
Total Exposure if all ‘average’ (total i + ii + iii)
(i)
Management
X 0.32 = X = (ii)
X 0.48 = X = (iii)
= (iv)
Cost of „Average‟ vs. „Superior‟ Performers
Your cost if
all in this
category
„average‟
$20,000 $3,800 50 $190,000
$28,000 10 $280,000
$790,000
Percentage of salary investment at risk = 30%
$40,000 $12,800 25 $320,000
$60,000
These figures are not ‘worst case’: If any or all are below average the loss for that position is doubled – but so is the potential for improvement
Unless all your people are ‘superior’ performers you are losing money unnecessarily
Regardless how large or small your organization the potential losses are relatively large
Every time you move performance in any single job from ‘average’ to ‘superior’ you have a measurable financial impact
This is the easiest strategy for making significant improvements to your bottom line
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29% of employees are actively engaged in their jobs
54% are not engaged…merely present
17% are actively disengaged
22 Million actively disengaged US Employees
$350 billion per in lost productivity
BusinessWise, LLC * 203 458-1219 * www.business-wise.com
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.
Superior Producers
Actively Engaged
29%
Poor Producers
Disengaged 17%
Average Producers
Not Engaged
Present 54%
68%
Unless you are confident all your people are ‘superior’ performers you have great potential for bottom line gains
Regardless how large or small your organization, your potential for savings and productivity increases are great
Every time you move an employee’s performance from ‘average’ to ‘superior’ you enjoy a measurable financial impact
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12
0
10
20
30
40
50
60
70
80
90
100
14%
26%
38%
54%
66%
75%
Interview + Background
Check
+ Personality
& Behavior
+ Mental
Abilities
+ Interests
& Motivators
+ Job Matching
Information for hiring Superior Performers
Stop
Stop
Stop
Stop
Stop
Great People
HiringExpectations
Interview
Decision
Administer AssessmentsBackground and Reference Checks
Sourcing and Recruiting Process
Interview Training
Define Position
Key AccountabilitiesHard SkillsSoft Skills
Screening Interview
Comprehensive Interview
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