If you have any non-producers on your payroll right now, they are costing you money. So how much?
Well, it’s probably much more than you think… but that’s not as important as what you are going to do about it.
Not what you’ve done about it, because if they are still on your payroll and underperforming, you haven’t done much. Have you?
You are still handing over leads that they are not converting, providing accounts for them to service poorly and giving them responsibilities they fail to perform or need help from teammates to accomplish. And you still have to pay them your hard earned revenue.
The Two Types of Employees:
There really are only two types of employees; the “right” and the “wrong” ones.
So how do you decipher between the two? Well, it’s easy.
The right ones make you money because they are dependable, engaged, self-motivated, good team-players and capable of performing their jobs without extra training, micro-management, bonuses or ultimatums.
And they are the ones you need to fill your organization with if you want to reach the potential you know your business has (but hasn’t yet reached).
There is NEVER a Good Time to Have the “Wrong” People on Your Payroll
So, how can you tell who the wrong people are? Well, all of the things that the right people are, the wrong people are the opposite.
Yes, there are some employees that most of the days, weeks or months accomplish their goals as your Top Performers do. But then, for what ever reason (wrong person in the job 80% of the time / personal issues 20% of the time), they are unable to maintain peak productivity without being micro-managed and their performance slips.
You need to realize, their sporadic performance is hurting your bottom-line; and anyone who hurts your bottom-line is the wrong person to have on your payroll.
And there is never a good time to have the wrong people on your payroll; especially now in this time of economic uncertainty.
Today, it’s more important than ever to be focusing your efforts on initiating more effective marketing (as you learn about in this newsletter), increasing sales, servicing your clients and developing business. You should not be focusing on extra training, micro-management, creating bonuses or giving ultimatums.
The Cost of Employing Non-Producers
Complete the chart below to discover how much of your revenue is being wasted on the salaries of the wrong people.
Shocking, isn’t it.
The figure in the highlighted box is what you are spending a month just on the salaries of non-performers. Now, multiply that figure by 12 to find out how much of your annual revenue is being wasted paying people to hold your business back.
Remember, this is only the payroll expense of these people. You are also paying benefits, payroll and unemployment tax, L & I, etc. which will double this figure.
And when you factor in the lost opportunities, customers and sales because of incompetence and lack of skill, you can triple this figure.
That’s the Bad News… Now Here’s the Good
If less than 100% of your employees are TOP Performers, your business has more potential. If less than 80% of your employees are TOP Performers, your business has “a lot” more potential.
And by creating an HR System to find, hire and develop the right people, you’ll finally reach this potential.