By Emily Grace
credit world
Hiring the Right Talent
Examining recruitment and hiring processes helps companies retain the best employees
In every industry, companies face the challenge of identifiying and retaining the right talent. There are
many inherent costs associated with
hiring the wrong talent, including
increased turnover, management
concerns, morale problems and
production issues. To select the right
person for the job, companies must
reevaluate their current hiring and
training processes.
“The biggest problem organizations
are facing is having the wrong talent in
the wrong seats,” said Chris Young,
founder and CEO of The Rainmaker
Group in Bismarck, N.D., during an
ACA-sponsored teleseminar on high
achievers. “It is the silent bottom-line
killer.”
During his presentation, Young
explained how the wrong talent can
hurt an organization in production
costs alone. In his example, he outlined
a breakdown of talent collection
performance:
• The top 20 percent collect $165,000
per year.
• The middle 60 percent collect
$120,000 per year.
• The bottom 20 percent collect
$95,000 per year.
In this example, the difference
between a top 20 percent performer
and a bottom 20 percent performer is
$70,000 per year. If a company with 50
collectors replaced the bottom 20
percent of its performers with middle
performers, it could improve
collections by $250,000 per year. That
number only grows with the number of
employees in an organization. What if a
company replaced the bottom 20
percent with top 20 percent
performers?
There is one problem with this
calculation. Collection departments
measure revenue, not what should or
could have been. To make dramatic
improvement in talent production
costs, companies should implement
strategic talent management decisions
to help realize their lost revenue
opportunities.
January 2010 Collector I 35
