BLG Leadership Insights Features

The Dollar Value of Leaders

Next time your boss gets mad at you, show him or her this chart.

According to the research presented–it takes an employer about $5,500 to replace one $8 dollar-an-hour employee. If you’re lucky enough to make more than $8 an hour–imagine what it would cost your company to replace you.

If I knew this a few years ago I would have been a far worse retail employee.

Anytime my manager would demand I that I put my cellphone away, I’d bring up the $5,500.

Anytime I’d be caught taking a long 15 minute break, I’d bring up the $5,500.

And if I happened to arrive late–I’d cough, $5,500.

I wonder how far that would have got me. Probably exactly where I am now. Sitting in an office, remincing about the good old days in retail where lunch breaks were one hour long, by law.

The graphic wants to warn small business and HR departments that firing and hiring aren’t cheap processes. Time and money goes into finding and training new people as well as making sure the person on the way out has all his paperwork in order.

But that’s obvious. However, seeing a dollar amount attached to the process makes the obvious startling.

The chart also revels something else, but not directly. It shows small buiness owners and HR departments the value of good leadership.

Good leaders create retention. People like good bosses that communicate goals, push movement, and create some space for creativivity. If people are happy, they tend to stick around.

Now we can look at the chart a different way.

Every talented leader creates value–$5,500 dollars or more of it–every time they rally a team together, get things done, and make people feel good about themselves.

Again, this might be obvious, but it’s helpful to see, in real dollars, how much money a good leader can save a company.

BLG Leadership Insights

10 Must-Read Social Media & Leadership Stories From June 14-18

1. Fine pointers that every business needs to learn in order to ‘humanize‘ their web presence.

2. 5 good reasons you don’t need to panic when mistakes happen.

3. 10 hiring mistakes you should look out for.

4. Legacy and leadership questions at Pixar.

5. Leaders have to be careful of their…knees. Odd, but captivating comparison.

6. 11 useful pointers that can help you optimize your time at the office.

7.  The key to corporate survival is having the skill to fall asleep on airplanes–a well-written, personal, story.

8. What doctor’s don’t learn in medical school. Very interesting lessons and ideas that can be applicable to leaders.

9. Scott Adams on how to pick winning companies. Trust your feelings of disgust.

10. Top 10 CEOs….in prison.

Art work entitled Forces of Nature 5, by Yael Dresdner.

BLG Leadership Insights

Never Hire Someone As Stupid As You!

When you’re hiring staff, building a team, or searching for a contractor, it means you need one thing: help. You’re essentially pulling over and asking for directions. If you need help, hire the best person you can for the job. Hire someone smarter than you. It’s a rule that seems obvious but it’s one that many hiring managers forget when they are blinded by ego or awestruck by a pretty resume.

Let’s say you need to redesign your company webpage and you need it done quickly. First, admit your ignorance, quit entertaining the notion that you can, one day, learn enough web-building skills to do it yourself. Second, don’t outsource the work to someone already on your staff who only has minimal web construction abilities. Look for someone smarter than you and who has a new set of skills to bring to your team. Not only will your goal be accomplished, but it will be done well and in a timely fashion. The costs may be higher but the job is done and customers are won. There’s a reason why Fortune 100 companies pay top-dollar for top-talent.

The above example is common sense. However, hiring people who are smarter than you and in your field poses a potential problem. You’ll assume that the equally qualified new hire may quickly outperform you and take the corner office before you do. It can happen. However, if you are able to work with your new hire and combine your strengths to guarantee positive results–you’ll be the one who was responsible for your team’s success. You have to be able to get people on your side.

Sports coaches search for the best talent even if it comes with high costs and the danger of mixing testosterone-packed temperaments and egos. A good coach will know how to manage highly ambitious players as well as their tried-and-tested players. It’s about managing talent, keeping people on your side, and being brave enough to admit that you need help.

Once you accept that you need help, it’s easy to ask for directions and hire qualified people. If you don’t admit your ignorance– you’ll be at a loss and you’ll drive your team around in circles.