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9 Costs of Hiring Mediocrity

No one hires mediocre employees purposely.

Yet they get hired.

Mediocre employees stem from poor recruitment methods and cost you in 9 ways:

1  Your Management Time And Effort:

  • Mediocre employees are “high maintenance”, soaking up management time and attention.
  • Time spent on mediocre employees can’t be spent on better employees.
  • Hiring mediocre people as managers and team leaders has a multiplier effect on others.

2  Your Training Time And Costs:

  • Mediocre employees require remedial training because they lack competency.
  • Mediocre employees are even less productive during their training.

3  Your Customer Satisfaction And Error Rates:

  • Mediocre employees send a message to your customers about your service and standards.
  • Mediocre employees make more errors and lose you sales and customers.

4  Your Product Development:

  • Mediocre employees generate mediocre ideas that distract and detract from your vision.
  • Their mediocre ideas can drastically reduce your products Time To Market.

5  Your Competitive Advantage:

  • When you hire a mediocre employee, your competitor cannot.  That’s your loss.
  • It’s an opportunity cost when mediocre employees fill spots that could be filled by a stars.
  • Mediocre employees send a message to your markets that you are getting weak and slack.
  • Mediocre employees produce less per dollar of salary.  Typically 60% of all corporate budgets go to employee expenses, so inefficient use of these funds is a major failing.
  • Eventually, hiring mediocre executives and managers adversely affects your stock price.

6  Your Other Employee’s Productivity:

  • Superior employees eventually resent having to ‘carry’ mediocre employees.
  • Team productivity suffers due to time lost helping the mediocre employees.

7  Your Image And PR:

  • Mediocre employees send a message to potential candidates that you are not selective.
  • Mediocre employees signal current employees that your standards are declining.
  • High turnover due to mediocre hires sends a message to the labour market:  beware!

8  Your Out Of Pocket Expenses Increase:

  • Mediocre employees cost the same in salary and benefits as superior employees but their Return On Investment is much lower. (Eg, revenue generated by superior employees exceeds 5 times their salary).

9  Your HR Time And Image:

  • Firing costs (eg, paperwork associated with disciplinary measures, termination, legalities, etc.) and replacement costs (eg, recruiting) increase with mediocre employees.
  • Mediocre hires diminish the HR department’s image within the company.  Trust is lost.
from an article by Dr. John Sullivan, former Professor of Human Resource ManagementCollege of Business, San Francisco State University
Solution:  Mediocre employees cost you a bundle; superior employees generate profits.

So hire superior employees because preventing and overcoming mediocrity is crucial to your ongoing success.

About Dr. Duff Watkins [www.execsearch.com.au]

international executive search consultant / author-- dispensing career advice about how the job market really works


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Dr. Duff Watkins

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