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ROI & Productivity

The best workers add value to your company by being more productive, collaborating with others, showing discretionary effort etc.  Consider the return on investment they offer and countless other reasons.

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%?')

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?

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. 

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.

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. 

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