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While some executives may poo poo the idea, there is no doubt that an organization’s recruiting brand — how they are perceived in the marketplace by the best talent — plays a huge role in their ability to hire and retain top performers.
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The ratio of top performing employees to the “B” and “C” quality workers is a critical factor in an organization’s ability to produce maximum results.

Not to look at the issue in reverse, but an organization’s recruitment brand is decided as much by how fairly it treats those on the backside who have been let go as it does those to whom they are whispering sweet enticements to on the front end during the hiring process.

“We have a great hiring strategy,” one human relations executive declared, “but I am embarrassed about how we treat people who did not fit in our organization.  We are cheap and the word is getting out.” And what she did not say but should have, is that when their bad reputation gets out in hiring circles, the adverse impact will be significant.

iStock_000006770663SmallWhen organizations do not provide departing managers and executives decent exit packages for any reason, other than imminent financial collapse, they are sending an incredibly toxic message: you do not want to work here because we will not respect the talent you have or the contributions you may make.

Even on the rare occasion when top performing employees fail to make the grade, unceremoniously pushing them out the door on the cheap may assuage the anger or frustration of the person who made the hiring mistake, but it just made finding a solid replacement more difficult.

Finally, think about it this way.  If your company has a history of treating people badly — no severance, reasonable accommodation for setting a final date for health or retirement benefit coverage, or even a refusal to provide outplacement coaching — why would a top performer want to take a chance with you?  They won’t.  However, there will always be marginal performers who are looking for any kind of work they can get.  They will even work for the worst bosses in town because for them, it is just a paycheck.
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Is that the quality of personnel you want to hire?  Is that the kind of person you want taking care of your mother, father or a critically ill child?