Saturday, February 16, 2013

The Cost Of The Wrong Employee

Too many times, I hear managers complain about how it is "impossible" to "get rid" of an employee that is not producing.  The truth is, ANYthing is possible - with sufficient motivation.  If the CEO said "Fire him today or you will be fired", there's little doubt about who would be walking out the door.

That said, a significant problem is that most managers don't consider the true cost of keeping the wrong employee. 

Internal costs:  Team finds it more difficult to complete tasks.  Internal strife lowers morale.  Other employees stop trying to achieve higher standards because there is no consequence (proven by your willingness to allow the "bad apple" to get away with the poor behaviors).  Attitudes/behaviors are "dumbed down" to lowest level you accept.  More mistakes.  Slower work due to lost efficiencies.  Higher costs to do business must be either absorbed into budget (less profit or less invested in internal benefits) or passed on to customers (less value for their investment).

External costs:  Customer experience suffers.  They visit/buy less.  They tell others about lukewarm or disappointing experience.  Brand/reputation suffers.  Others won't do business with you.  Sales decrease.

Then, senior executives WILL get upset at bottom line results and look for the root cause - and what (or who) allowed it to continue.

If you don't hold them accountable (YOUR responsibility), then there are costs...for which YOU will be held accountable.

Think about it.  But more importantly, do something about it...today!

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