BusinessWise, LLC * 203 458-1219 * www.business-wise.com

Your Ability to Obtain & Retain Top Producing Talent

4.5 million businesses owned by baby boomers will be looking for buyers in next 15 years…there aren’t enough buyers!

85 year study of businesses reveals 84% of the employees are either poor or average producers… major opportunity costs

The lack of workforce engagement…implied costs & threat of impending talent loss

Ineffective hiring practices

BusinessWise, LLC * 203 458-1219 * www.business-wise.com

33% of the 5 million Baby Boomer businesses will transfer their businesses successfully

67% will need to sell their business

96% of the business owners believe they should have a written succession plan

87% of the business owners do not

There is less financing available for leveraged buyouts

Owners are expected to leave equity on the table…be their own banker

Major portion of personal assets…the business

BusinessWise, LLC * 203 458-1219 *

www.business-wise.com

4

.

Superior Producers

Top 16%

Poor Producers

Bottom 16%

Average Producers

68%

Unskilled / Semi-skilled

‘Average’ produce 19% more than ‘Poor-producers’ ‘Superior’ produce 19% more than ‘Average’ ‘Superior’ produce 38% more than ‘Poor-producers’

Skilled

‘Average’ produce 32% more than ‘Poor-producers’ ‘Superior’ produce 32% more than ‘Average’ ‘Superior’ produce 64% more than ‘Poor-producers’

Management / Professional

‘Average’ produce 48% more than ‘Poor-producers’ ‘Superior’ produce 48% more than ‘Average’ ‘Superior’ produce 96% more than ‘Poor-producers’

5

Source: “The validity and utility of selection methods in personnel psychology:

Practical and theoretical implications of 85 years of research findings”

Psychological Bulletin, Sept 1998, Vol. 124, No. 2, pp 262-274.

50 Unskilled / Semi-skilled Workers

25 Skilled Workers

10 Managers

6

7

X 0.19 =

Average

Salary?

Your cost per

„Average‟

# in this

category

X = Unskilled

Skilled

Total Exposure if all ‘average’ (total i + ii + iii)

(i)

Management

X 0.32 = X = (ii)

X 0.48 = X = (iii)

= (iv)

Cost of „Average‟ vs. „Superior‟ Performers

Your cost if

all in this

category

„average‟

$20,000 $3,800 50 $190,000

$28,000 10 $280,000

$790,000

Percentage of salary investment at risk = 30%

$40,000 $12,800 25 $320,000

$60,000

These figures are not ‘worst case’: If any or all are below average the loss for that position is doubled – but so is the potential for improvement

Unless all your people are ‘superior’ performers you are losing money unnecessarily

Regardless how large or small your organization the potential losses are relatively large

Every time you move performance in any single job from ‘average’ to ‘superior’ you have a measurable financial impact

This is the easiest strategy for making significant improvements to your bottom line

8

29% of employees are actively engaged in their jobs

54% are not engaged…merely present

17% are actively disengaged

22 Million actively disengaged US Employees

$350 billion per in lost productivity

BusinessWise, LLC * 203 458-1219 * www.business-wise.com

10

.

Superior Producers

Actively Engaged

29%

Poor Producers

Disengaged 17%

Average Producers

Not Engaged

Present 54%

68%

Unless you are confident all your people are ‘superior’ performers you have great potential for bottom line gains

Regardless how large or small your organization, your potential for savings and productivity increases are great

Every time you move an employee’s performance from ‘average’ to ‘superior’ you enjoy a measurable financial impact

11

12

0

10

20

30

40

50

60

70

80

90

100

14%

26%

38%

54%

66%

75%

Interview + Background

Check

+ Personality

& Behavior

+ Mental

Abilities

+ Interests

& Motivators

+ Job Matching

Information for hiring Superior Performers

Stop

Stop

Stop

Stop

Stop

Great People

HiringExpectations

Interview

Decision

Administer AssessmentsBackground and Reference Checks

Sourcing and Recruiting Process

Interview Training

Define Position

Key AccountabilitiesHard SkillsSoft Skills

Screening Interview

Comprehensive Interview

13