Cost of ‘Bad’ Hire

TSG Value Proposition & Performance Metrics

Quality, Speed and Eliminate ‘Bad’ Hires

 

The Incredible Cost of ‘Bad’ Hire

  • 150-300%+ of annual salary + 35%+ lower performance and productivity X # of years times number of employees
  • Business Impacts Lost productivity, reduced revenue, lost innovation, customer impacts, error rates, slower time-to-market, loss of competitive advantage
  • Increased Management Time and Effort More management time, weak hires must be replaced, performance management and termination costs
  • Hiring Manager’s Image is Impacted Being branded as a ‘C’ manager, loss of your colleagues’ respect, reduced bonuses, impacts on promote ability
  • People-Management and Team Impacts Resentment by coworkers, lost leadership and promotional opportunities, increased turnover, reduced internal transfers, opportunity costs, negative impacts on future hiring, legal issues increase, hiring costs, lost agility, longer ramp-up time, reduce learning, a loss of competitive intelligence, lower technology competence, more training required, loss of diversity, more temporaries required

 

Case Study:

Client hired TSG and another firm to benchmark and compare services & results (non-COVID products)

Non-TSG Contingency Hire ($13,000 fee)
2021 Revenue – $1.528M
2022 Revenue – $1.027M
142 days to fill; ($500K) territory loss; < 14 mo. tenure; terminated and refill (hired TSG)
TSG Retained Hire ($50K+ fee)
2021 Revenue – $932K
2022 Revenue – $2.1M
67 days to fill; $1.168M gain; ROI > 3000%
Promotable; Rep of the Year 		TSG Retained Hire ($50K+ fee)
2021 Revenue – $2.4M
2022 Revenue – $3.7M
91 days to fill; $1.3M gain; ROI > 3,400%
Promoted

 

 

TSG Value Proposition & Performance Metrics

Would you invest $37,000 to realize a $1M+ annual higher gain + build your organization for future succession planning?

 

Case Study:

Client hired TSG to ‘Clean Up’ after a Top 5 Firm Failed

Non-TSG Retained C level Executive Hire ($183,500 total fee paid)

On paper, extremely Qualified, Pedigreed; Professional Success

Extremely Charismatic; Great Interviewer; had ‘Powerful Friends’ as References

FAILURE – Never physically engaged (wasn’t driven); Unknown to company pre-hire, was having significant marital, extra-marital with employee(s) and other issues that impacted engagement, decisions and business outcomes – Exercised Employment Agreement Termination with Severance after 14 months (company forced)
TSG Retained to ‘Clean Up’ Above Hire ($124,575 total fee paid)

Seven (7) qualified, prospective candidates within 4 weeks or less; Client narrowed to top 3; Could have hired all 3; Hired #1 and extended offer to 2nd candidate (turned down as not a level desired)

SUCCESS – Employee engagement at all time high; mid-double digit revenue and EBITA growth globally last 2 years exceeding performance plan; Stock value appreciation of over 57%; In process of acquisition conversations for $B’s additional valuation