{"id":34,"date":"2011-08-08T16:59:15","date_gmt":"2011-08-08T15:59:15","guid":{"rendered":"http:\/\/topl.co.uk\/?page_id=34"},"modified":"2014-02-19T18:55:15","modified_gmt":"2014-02-19T18:55:15","slug":"answers","status":"publish","type":"page","link":"http:\/\/topl.co.uk\/?page_id=34","title":{"rendered":"Performance Studies"},"content":{"rendered":"

1. How much more do good performers deliver compared to the average?<\/strong>
\nStudies of performance differences in jobs found that it varies according to the type of job.\u00a0 In relatively straightforward jobs, (such as cleaners or machine operators) good workers produce about 20% more than their average colleagues, whereas with more complex, professional jobs the difference is more like 50%, and in sales jobs it is often more than twice as much.
\nIn many business areas, the financial value people add is a result of the leverage they can affect on capital employed.\u00a0 In these businesses, the differences between average and good performers tend to be very large (100%+) and the best or worst performers can make or break companies.<\/p>\n

2. What is the full cost of employing someone?<\/strong>
\nNormally between two and four times basic salary.\u00a0 One of the high (but often hidden) costs is office accommodation \u2013 particularly in city centres.\u00a0 Other costs include management and corporate \/ administration costs as well directly attributable costs such as fringe benefits, computer systems, training etc.<\/p>\n

3. How much does labour turnover cost?<\/strong>
\nAll of these added together.\u00a0 As a rule of thumb, the cost of replacing someone is usually equivalent to their annual full cost of employment (2. above).<\/p>\n

4. When are people most likely to leave?<\/strong>
\nThe most vulnerable time is at the \u2018induction crisis\u2019 (3-6months in) and during the first year.\u00a0 After about 2 years people are often looking for a promotion, or at least a change.\u00a0 Boredom can set in after 5 years in a job \u2013 at this stage the organisation needs to start demonstrating long term commitment.<\/p>\n

5. How do you find good people?<\/strong>
\nEach of these methods has its merits and its place.\u00a0 Referrals from good current employees often have the best \u2018hit rate\u2019 \u2013 3:1; (i.e. one good, suitably qualified candidate for every 3 suggested).\u00a0 Good recruitment advertising can deliver about 12:1, and is often an effective approach.\u00a0 For some jobs, e.g. airline cabin crew, unsolicited applications can provide a steady source of good applicants.<\/p>\n

Sources include:<\/strong><\/p>\n