ROI & Productivity

Research in Personnel Psychology (2013) reports the top 5% of the workforce produces 26% of a company's total output.  (four times more than you might expect)  26% instead of just 5%.  Ask yourself 'what should I do to get more of our team into the top 5%?’ (What can I do to cultivate existing employees to evolve to that top 5%?')

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In Frank Schmidt's 2016 article, he reviewed 100 years worth of research into the validity and the value of selection practices.  So what did he find?

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An above average 'blue collar' worker will produce 19% more output than an average one and 38% more than a below average one.  As we look at 'white collar' workers those figures jump to 32% and 64% respectively.  Even more impressive is above average managers or professionals producing output 48% above an average worker.  Obviously differences are substantial and indicate we want to get above average workers into our business because this leads to a more productive business and greater profit. 

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So spending a portion of this additional productivity to find above average workers makes a lot of sense.  Profiling & Assessment tools by TheWorks Profiler™ helps find those.

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There are implications in terms of time, emotional turmoil, businesses reputation and costs to getting the wrong person.  The U.S. Department of Labour reports the price of a bad hire as being at least 30% of the employee's first-year earnings.  Australian newspaper reports one bad hire can cost a business 2.5 times the employee's salary. 

 

A small investment into TheWorks Profiler™ can help prevent this.