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 salary

  • Promoting 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 salary

  • Losing 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 salary

  • Email me my results

  • This field is for validation purposes and should be left unchanged.