How important is hiring well? As important as you imagined and more
Bottom Line: In today's tight job market it's harder to higher well. You didn't need me to tell you that...but specifically is the difference between higher well and... less than well? Gallup's out with great new research that illustrates several important takeaways. First about the employees themselves...
The top 20% of candidates on average lead to these results:
10% more productivity
10% lower turnover
20% increase in sales
30% increase in profitability
That's huge! Hiring well equals 30% more profit. Just in case you needed any additional motivation to attempt to get it right... But that's a byproduct of satisfied customers because of having the right people in the right places. About customers. A lot of focus has been placed on employee engagement in recent years which is important, but the goal is to maximize customer engagement. Here's the scorecard...
Customers who're "engaged" spend 23% more with a business compared to average customers (this averages business to business customers in addition to retail). They're also 63% more likely to become repeat customers. When you look at the best performing companies today. Amazon.com, Netflix, Apple, etc. They are all masters of customer engagement in addition to employee engagement.