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Advice and How-Tos Calculating the Tremendous Dollar Value of a Top-performing or Innovative Employee

In professional sports, almost everyone readily agrees that a top-performing athlete is worth their weight in gold. That value is clearly reflected in their compensation, where for example a top-performing NFL quarterback can get paid 10 times more than the third-string quarterback on the same team. The value of adding a LeBron James, Peyton Manning, or Lionel Messi to your team can easily exceed hundreds of millions of dollars in revenue. The same is true in entertainment, where adding the right actor to a film or rock star to a concert can easily double the gross over an unknown performer.

Unfortunately in the corporate world, the HR function has failed to come up with a credible method for quantifying the “performance differential” between an average employee and a top performer in the same job. And as a result of not having this economic justification, executives have all too often been reluctant to fund the leading-edge recruiting, retention, and management processes that are required in order to successfully attract and retain these highly desirable top performers and innovators. Read More »

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