Business wise the ultimate competitive advantage

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Business wise the ultimate competitive advantage

  1. 1. BusinessWise, LLC * 203 458-1219 *www.business-wise.comYour Ability to Obtain & Retain TopProducing Talent
  2. 2.  4.5 million businesses owned by baby boomerswill be looking for buyers in next 15years…there aren’t enough buyers! 85 year study of businesses reveals 84% of theemployees are either poor or averageproducers… major opportunity costs The lack of workforce engagement…impliedcosts & threat of impending talent loss Ineffective hiring practicesBusinessWise, LLC * 203 458-1219 *www.business-wise.com
  3. 3.  33% of the 5 million Baby Boomer businesses willtransfer their businesses successfully 67% will need to sell their business 96% of the business owners believe they shouldhave a written succession plan 87% of the business owners do not There is less financing available for leveragedbuyouts Owners are expected to leave equity on thetable…be their own banker Major portion of personal assets…the businessBusinessWise, LLC * 203 458-1219 *www.business-wise.com
  4. 4. 4.SuperiorProducersTop 16%PoorProducersBottom 16%AverageProducers68%
  5. 5. Unskilled / Semi-skilled ‘Average’ produce 19% more than ‘Poor-producers’ ‘Superior’ produce 19% more than ‘Average’ ‘Superior’ produce 38% more than ‘Poor-producers’Skilled ‘Average’ produce 32% more than ‘Poor-producers’ ‘Superior’ produce 32% more than ‘Average’ ‘Superior’ produce 64% more than ‘Poor-producers’Management / Professional ‘Average’ produce 48% more than ‘Poor-producers’ ‘Superior’ produce 48% more than ‘Average’ ‘Superior’ produce 96% more than ‘Poor-producers’5Source: “The validity and utility of selection methods in personnel psychology:Practical and theoretical implications of 85 years of research findings”Psychological Bulletin, Sept 1998, Vol. 124, No. 2, pp 262-274.
  6. 6.  50 Unskilled / Semi-skilledWorkers 25 Skilled Workers 10 Managers6
  7. 7. 7X 0.19 =AverageSalary?Your cost per„Average‟# in thiscategoryX =UnskilledSkilledTotal Exposure if all ‘average’ (total i + ii + iii)(i)ManagementX 0.32 = X = (ii)X 0.48 = X = (iii)= (iv)Cost of „Average‟ vs. „Superior‟ PerformersYour cost ifall in thiscategory„average‟$20,000 $3,800 50 $190,000$28,000 10 $280,000$790,000Percentage of salary investment at risk = 30%$40,000 $12,800 25 $320,000$60,000
  8. 8.  These figures are not ‘worst case’: If any or allare below average the loss for that position isdoubled – but so is the potential forimprovement Unless all your people are ‘superior’ performersyou are losing money unnecessarily Regardless how large or small yourorganization the potential losses are relativelylarge Every time you move performance in any singlejob from ‘average’ to ‘superior’ you have ameasurable financial impact This is the easiest strategy for makingsignificant improvements to your bottom line8
  9. 9.  29% of employees are actively engaged in theirjobs 54% are not engaged…merely present 17% are actively disengaged 22 Million actively disengaged US Employees $350 billion per in lost productivityBusinessWise, LLC * 203 458-1219 *www.business-wise.com
  10. 10. 10.SuperiorProducersActivelyEngaged29%PoorProducersDisengaged17%AverageProducersNot EngagedPresent54%68%
  11. 11.  Unless you are confident all your people are‘superior’ performers you have great potential forbottom line gains Regardless how large or small your organization,your potential for savings and productivity increasesare great Every time you move an employee’s performancefrom ‘average’ to ‘superior’ you enjoy a measurablefinancial impact11
  12. 12. 12010203040506070809010014%26%38%54%66%75%Interview + BackgroundCheck+ Personality& Behavior+ MentalAbilities+ Interests& Motivators+ Job MatchingInformation for hiring Superior Performers
  13. 13. StopStopStopStopStopGreatPeopleHiringExpectationsInterviewDecisionAdminister AssessmentsBackground and Reference ChecksSourcing and Recruiting ProcessInterview TrainingDefine PositionKey AccountabilitiesHard SkillsSoft SkillsScreening InterviewComprehensive Interview13

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