Are Employees Your Most Important Asset?

Ever heard the platitude about people being our most important asset – not true.

Having the right people doing the right things well is your most important asset.

To summarize one study about differences in productivity, researchers broke jobs into three categories.

Low, medium, and high complexity work.

Low complexity work includes unskilled and semi-skilled workers. What the media refers to as burger flippers.

They found that:

In unskilled labor jobs the top 10% of workers were 3 times more productive than the bottom 10%, and twice as productive as the average producer.

Medium complexity work would include technical through low level professionals.

In this group the top 10% were 12 times more productive then the bottom 10%.

High complexity jobs included leadership, scientific, complex sales and other similar jobs.

In complex jobs, the top 10% were very effective at 227 and the bottom 10% were a minus number (- 27) costing the organization big bucks. Because you can’t do a relationship between a positive and a minus number if you moved the minus number to zero the difference would be almost infinite.

The difference in productivity isn’t technical skill it’s … the behavioral competencies and work habits people bring to the job.

Let me illustrate, I once worked as the VP of HR for the President of a consumer products company. He was known as a turn around expert, but the company wasn’t in turn around mode it was in growth mode.

To make a long story short, one day he so angered the President of our biggest customer that that President said that not only were they no longer going to buy from us, but was also going to send everything they had in inventory for a credit.

That call turned out to be a $50 million dollar lost over night taking the company from $120 Million to $70 Million over night. It killed the company. Wrong guy in wrong job and that is not an isolated event.

In today’s environment hiring mistakes are often very costly, time consuming and frustrating.

I’ve recently seen that hiring people with 15% more productivity can add 400% in ROI.

Want to improve the odds that you and your leaders can consistently hire great people at all levels of the organization? Let’s talk.