Quantifying The Cost of a Wrong Person. Part 4 of 4

If your business has even one wrong person on the team, not only will it detract from your other employees but it will disrupt productivity and negatively impact company growth.  They are slowly killing your business from the inside.

Doing The Math, Wrong Employee’s Impact $$

I recently walked through the numbers with one of my clients. Here’s what we found

This client has a simple product. There was a quality issue with a product and their employee decided it was “good enough” instead of correcting the issue or making it right.

Measuring the $$

  • 6x cost of the product. A $25 cost became a $150 fix
  • 1 Entire Day of productivity lost: 1 hour became 9 to fix the problem = that’s a lot of payroll dollars and lost productivity
  • 3x the people involved to correct the issue. 2 employees became 5 employees & 1 manager involved in the fix
  • 2 customers were negatively impacted.

The Ripple Effect

This is just the numbers side of what is easy to measure. Keep in mind the ripple effect of how employees and customers now perceive this company due to this one person ‘not caring’ about quality – with a decision made in just 1 minute.

  • Other employees are likely annoyed about having to do things over, fix other people’s work, and likely will now have more training.
  • Other customers could have been impacted because productivity was interrupted and quality issues for any other orders had to be corrected before they could be processed or shipped
  • Those customers who were negatively impacted with lower quality products could leave, look for another provider or provide negative feedback to other potential customers – impacting longer-term sales for this company.

Odds are you have a gut feeling that someone isn’t quite the right fit for the company or the position they are in. I encourage you to address it sooner rather than later, so the impact on your company’s growth and culture are not negatively impacted like the company used in this example.

As an EOS Implementer, I love bringing these important EOS tools and very relevant experience from my own work and my clients to help businesses achieve Vision, Traction & Healthy. Have you had a similar situation in your workplace or is there anything I can help you with right now?

Just email me and let’s have a conversation.

PS, if you’re wondering if EOS is a fit for your organization let’s set a time for a free 90-minute virtual meeting so you can learn more about it and me. I look forward to it.

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