Why Hire Excellence?
In Hiring Excellence, Pat MacMillan examines some of the direct and indirect costs of hiring average people when what you really need is excellence. Here are his very conservative estimates for one mis-hire—a secretary in his office.
| Interview time by staff other than the hiring manager | $500 |
| Wasted salary (Six months at 50% effectiveness) | $5,500 |
| Wasted benefits | $2,200 |
| Severance | $2,100 |
| Training on our computer systems | $2,200 |
| Wasted time, morale, etc. of other staff | $4,000 |
| Business, client problems, etc. | $1,000 |
| Total | $17,500 |
From similar calculations, here are some comparable replacement costs
- For a $20,000/ year factory supervisor — $36,500
- For a $50,000 salesperson — $171,500
- For a $150,000year technical manager — $380,000
Indirect Costs of an Inappropriate Hire
- Morale is lowered.
- Management time is wasted.
- Business Opportunities are lost.
- Bad decisions perpetuate themselves, leading to more mis-hires. (See above.)
Are they Worth it?
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