BY PAUL BERG
One of the most important findings Gallup has ever made is that companies name the wrong person manager a staggering 82% of the time. Yet, by hiring the top 10% of manager talent — call it “A” level talent — organizations generate a 27% lift in revenue per employee.
Hiring less talented managers, however, costs businesses hundreds of billions of dollars in potential organic growth every year.
For example, a company with 50,000 employees and 5,000 managers typically only has 900 top-talent managers in place.
If that company generates $50 billion in annual revenue, low management talent costs the company $11 billion a year.
Is there enough “A” talent to go around?
“A” manager talent is rare. Gallup Analytics shows that only about 10% are born with it.
But still, a 50,000-person company could expect …