Cost of Procrastination Holding on to Low Performers:Sometimes you think it’s easier to just hold onto someone who is not working out to avoid a conflict without realizing the cost to the organization. What usually happens is: Mediocre levels of productivity become acceptable in the company Managers waste too much time trying to change these individuals Wasted money in training programs to try to improve the level of performance Management’s image is lowered for either not seeing the lowered performance or not removing the person from the company Possible loss of customers and/or prospects Negative impact upon the company’s performers Estimated Cost: 2-3 times salaryAverage Salary of low-level performer#of Low-Level PerformersTotalPromoting an Individual without the “Right Stuff”When you promote someone who isn’t ready, it can create a domino effect within your employee ranks. It can cause: Possible loss of personnel, customers and/or prospects Replacing the promoted individual with someone possibly less qualified Extended learning curve causes lower productivity Negative impact upon morale Eventual replacement — starting the promotion process over again too soon Estimated Cost: 4-6 times salaryAverage Salary of Poor Managers#of Poor ManagersTotalLosing a High-Level Performer:Time and again the data shows high-performers increase your bottom line by a factor of 5. Do everything you can to keep these individuals. If not, it can cause the following: Loss of productivity that is significantly above acceptable standards Many times management will settle for someone that is less qualified to replace the high level performer Replacing the productivity of a High-Level Performer typically takes more than one employee Loss of Intellectual Property that inevitably leaves with the individual Negative Morale – other performers may be gin looking for other opportunities Estimated Cost: 6-8 times salaryAverage salary of High-Level Performers# of Lost High-Level PerformersTotalEmail me my resultsName* First Last Email* Privacy* By using this form you agree with the storage and handling of your data by this website. Sign me up for email communications PhoneThis field is for validation purposes and should be left unchanged.