Over my three and a half decades of seminar and in-house training programs, I have had at least one competitor in the Training and Development Arena who advises you to hire four to keep one. That is, essentially, a 25% success rate, if his formula held true. But the PEAC SYSTEM® will give you better odds than that. You see, the real advantage to our evaluation system is that you know from Day One what you will need to do to make this person successful. True, sometime it is more than you have in time and money, and you might pass on them. But in hiring blind, especially in these trying times, you are going to average about 20% success rate. Those statistics have been around for years, and they hold. What does that mean in expense? Lets take a look:
One easy place to try to control costs is the salary/draw. I favor paying as little as possible in this area, and a bigger commission schedule. The profiles that score in the 50% plus area tend to like this, because they also like the challenge this creates. The real money is in doing the job, not in showing up. But, the real costs are in the hidden areas. First of all, if you give away your last desk to a non-performer for, say, six months, and your average performer generates, say, $50k back to you after costs, in that same period, the non-performer just cost you salary plus $50k! But worse, is the damage done by turning off candidates and clients to your company from mishandling or promises made but not fulfilled. A kind of BAD WILL, as opposed to GOOD WILL. These are hidden costs, and you might win some of them back, but while they are out of your range, they cost you in lost revenue. So, as an estimate by some of my competitors, this hidden area might be as high as $20k, maybe closer to $30k you lose for the term of hire.
Add them up. Using just reasonable figures, a six month window from a non producer will cost about $15-20K in salary or draw combinations, $50k in a tied up desk with no production, and $20-$30k in bad will. You can see that a bad hire can reach $100k in as little as six months. So, if you start training on the 'discovered profile' ninety days out, and still have a 25% chance, you are literally throwing away money. Know them from Day One, and increase your odds of success. In fact, the PEACSCORE®; will give you the odds, and the Reader will help determine what you need to do in following the recommendations for training and development. And, if you get in trouble, down the road, a quick connect to your Reader can get you back on track. Be advised, in the pending automatic online system later this year, the Reader is optional and seriously recommended for anyone you are planning to hire.
The point of Better Now Than Later is if you do hire marginal people, work hard with them, stay involved, and unless you see distinct improvement, cut early. Some competitors speak of as little as a month. I like six to eight weeks, for some profile take more time to understand what they are doing, before picking up the pace. Still, keep in mind you are ALWAYS looking, even when you are not in a position to hire. And we can help identify those most likely to succeed out of those you find. We can help... keep us in mind...
If you would like a better, in hand guide, click the header above to check out my new Guide to Successful Hiring in the Personnel Services Industry. It is full of tips and tricks and many optional tools that can make a difference!
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George W. Tucker, MS
The PEAC SYSTEM®
Finding 'Em, Training 'Em and Keeping 'Em
(941) 297-9197
https://peacsystem.com
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