The Hiring Dilemma: Excellence vs. Cost - Which Should You Choose?

I usually write newsletters based on questions I am asked from CEOs and Small Business Owners. However, this question should be on everyone's mind, but surprisingly isn't asked enough:

Do you hire the excellent candidate that is more expensive, or the qualified but just fine candidate that is cheaper?

In these days of rising salary costs, it's tempting to focus on finding the lowest salary that will get a warm body in the seat. But is this really the best strategy for your business? Let's break it down!

The Case for Excellence

Before you make a beeline for the budget option, consider these facts:

1. Productivity Powerhouses: Excellent employees often get up to 20% more done in a 40-hour week than their mediocre counterparts. That's like getting an extra day of work each week!

2. Engagement Experts: Top level and top paid employees are often the most engaged ones naturally. According to Gallup, only 23% of employees are engaged. But get this - those in the top quartile of engagement deliver 40% higher quality work and 21% higher productivity. A lot of that can be attributed to pay.

3. Low-Maintenance Leaders: Top-notch employees usually require less hand-holding. Their experience and self-motivation mean you spend less time problem-solving and more time on strategic leadership.

4. Positive Peer Influence: Excellence is contagious! When one person raises the bar, others often follow suit. You're not just hiring one great employee; you're potentially upgrading your entire team.

But What About the Cost?

Now, I know what you're thinking. "Sounds great, but what's the price tag?" Let's crunch some numbers:

In comp studies, the salary range from bottom to top is typically around 25%.

For example, an Accounting Manager in Atlanta:

• Median salary: $125K

• Top of range: $153K

• Bottom of range: $98K

So, the difference between an average performer and a rock star? About $28K per year, or $2,333 per month.

The Million-Dollar Question

Here's what baffles me: Why do so many companies aim for the $98K-$125K range to save money, when they could get a superstar for just $28K more?

Think about it:

• What do you spend on other business expenses each year?

• Would you choose the cheapest brain surgeon or wedding venue?

• So why skimp on the people who drive your business forward?

The Bottom Line

I get it. You can't hire top-dollar talent for every position. But for key roles, consider this:

Is saving $2,500 a month worth missing out on:

• top level and top paid employees are often the most engaged ones naturally- 20% higher productivity?

• 40% better quality work?

• A self-motivated employee who inspires others?

• Less time spent on day-to-day management?

Food for Thought

Next time you're hiring, don't just ask your recruiters for the least expensive candidate who'll say yes. Instead, consider the value of excellence. It might just be the best investment you ever make in your business.

What do you think?

Are you Team Excellence or Team Budget? We'd love to hear your thoughts and experiences. Drop us a line or share this post with your network to keep the conversation going!

Remember, we're always here to help you navigate these tricky hiring decisions. Let's work together to build the best team for your business - whatever that looks like for you!