AUSTRALIAN BUSINESSES waste $1,118 for every full-time employee, based on the time managers spend dealing with poor performers, according to a recent report
AUSTRALIAN BUSINESSES waste $1,118 for every full-time employee, based on the time managers spend dealing with poor performers, according to a recent report.
This figure equates to a loss of more than $82 million a year for Australia’s top 50 private businesses alone.
Conducted by UK research group The Future Foundation and commissioned by assessment firm SHL, the report found that Australian managers spend approximately 12 per cent of their time, or one hour every day, correcting others’ mistakes.
The Getting the Edge in the New People Economy report surveyed 700 managers and 2,500 employees across Australia, the UK, USA, Sweden, Netherlands, India and Hong Kong.
Australian managers have a more easygoing style whereby workers are encouraged to complete tasks autonomously and get the job done, with less emphasis on reaching visionary goals.
The report also found that Australian managers don’t emphasise the value of star performers as much as ‘go-getter’cultures, such as the US.
“Star performers in the US are seen to deliver nearly five times the value of lower performing employees, while in Australia they are seen as delivering only around three times as much,”according to SHL managing director Sarah Kearney.
Australian managers reported that 50 per cent of their employees perform to an acceptable standard, however they believed only 20 per cent became exceptional performers.
This contrasted with Swedish managers, who felt that 60 per cent of employees performed to a high standard. Swedish organisations also had the highest investment in employee development with a lower priority on correcting mistakes.
“While Australian managers tend to encourage all employees to perform to a high standard, the lower emphasis on individual star performers can work in Australian organisations’ favour, by developing a broader base of consistent talent that is less reliant on the performance of a handful of stars,”Kearney said.
“However the blind spot that this might create in the Australian workplace may include a lower level of recognition given to high achievers and the motivation given to potential star performers.”
