The True Cost Of A Bad Pricing Hire - Taylor Wells Pricing
  • 6 years ago
The True Cost Of A Bad Pricing Hire

The tangible hiring costs of a bad hire in your pricing team (i.e., the cost to fill and refill a position, on=boarding and initial training) cost you $60 – $70K for a single pricing analyst hire and $90 – 120K for a single price leadership hire.

However, it’s the soft costs of a bad hire that often rank above the monetary hiring costs and hit the bottom line: Hidden hiring costs like: lost sales opportunities, interruptions to implementation and workflow, strained customer and employee relations, and disengaged and stressed out teams.

Gallup study tell us unskilled and unqualified managers at work, are costing their organisations from $450B and $500B worth of productivity annually.

How? By undermining employee engagement – and underplaying the importance of the recruiting process.

When an employee fails managers typically do not blame themselves. The employee probably has a bad attitude, can’t set priorities, or won’t take direction, a manager might contend. But sometimes an employee’s poor performance can be blamed largely on the boss. You may be unknowingly triggering the set–up-to-fail syndrome, in which employees whom you (perhaps falsely) view as weak performers live down to your expectations. It’s on you, the manager, to reverse this dynamic.

Inadequate screening is driving up your hiring costs each year. Latest research reveals at least 1 in 5 people in a team are a bad hire or regretted decision. On top of this, when you factor in the productivity and morale impacts of bad hires, hiring costs add up considerably. Hidden hiring costs like: missed sales opportunities, lost customers, strained employee relations, interruptions to work flow, disengagement, incompetence, mistakes, lack of trust, credibility issues, stress and burn out.

Hiring costs rise further still, when firms are working through a complex transformation or integrating price improvement software because the pricing teams are expected to deliver more complex pricing outcomes.

Screening people out and identifying characteristics of potentially bad hires early in the recruiting process is now harder than ever: Over the past 5 years, applicant numbers have risen by 33% for generalist pricing roles while applicant figures for technical, niche or specialist pricing roles drop 78% below the average. 60% of applicants for pricing roles don’t meet basic requirements. And, highly automated recruiting is driving two thirds of applicants away.

Left unchecked, the standard recruiting model produces large, unqualified candidate pools that drowns out real talent and potential. As recruiters screen large numbers of online applications and CVs using the wrong data and checks, your business ends up progressing unsuitable people through the recruiting funnel.

Bland automated rejection emails are sent out to quality candidates more suitable for the job. Rejected candidates feel resentment towards the businesses for wasting their