If you don’t have the right tools, jobs take longer and don’t turn out well. Those jobs often need fixing or re-doing later. It’s the same with people. Trying to get a job done without qualified, experienced people costs your organization more money and aggravation in the long run.
Think that lower compensation saves money? Think your budget isn’t big enough to invest in the people you really need? Think about it this way: What does it cost not to invest in knowledgeable and experienced people?
Organizations are exposed to five risks by not investing in the right people:
- Limited Capacity
People without the necessary skills require more supervision and are less familiar with the latest practices, systems, laws, and other areas. To grow or to stay competitive, organizations need people that keep up with changing conditions and new methods.
Unqualified hires often result in higher turnover. Hiring and training takes time. Vacancies put stress on the rest of your team. Time and stress are not expense items on your financial statement, but those costs are real.
- Higher Error Rate
Unqualified employees make more errors, which is time-consuming and expensive to correct. And that assumes the errors are detected; undetected errors create costs you cannot identify.
Experienced people know what to do and how to it because they’ve seen it before. They assess new situations quickly and accurately. Inexperienced people take more time because they are figuring it out as they go.
- Regulatory or Legal Compliance Issues
Employees who are unaware of compliance issues can harm the organization, increase costs, and tarnish reputations. Issues can range from industry-specific issues to general business concerns, such as taxes and payroll.
Getting the right people on your team isn’t easy, but it’s impossible if you don’t pay enough to attract and retain them. Considering the five risks of not investing in the right people can reduce the expense of making a cheap decision.