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Cost of Mis-Hire
Study Results according to
Topgrading,
by Bradford D. Smart, Ph.D.
Copyright©Penguin
Group(USA) Inc., 1999,2005.
All rights reserved |
|
Study comprised of 52 cases
Number of years in job: 1.6
Base Compensation: $102,692 |
Average Statistics |
|
Cost in hiring |
$31,643 |
|
Compensation
(all years) |
$255,452 |
|
Cost of
maintaining person in job |
$67,653 |
|
Severance |
$33,962 |
|
Cost of mistakes, failures;
wasted and missed business
opportunities** |
$1,232,092**
|
|
Cost of
disruption |
$242,356 |
|
Sum of costs
|
$1,863,158 |
|
Value of
contribution |
$360.721 |
|
Net average
cost of mis-hire |
$1,502,436 |
14.6
times base compensation
The bottom line here is that bad hires directly effect
YOUR bottom line. The solution is to "Topgrade" your team to ensure mis-hires
are not made. We can help you in both areas, consulting you on the
Topgrading process as well as offering you your choice of only the best, most
qualified talent for your open positions.
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