Most companies in the energy sector have three tiers of employees – the truly exceptional, the mediocre and the not-so-good employees. We tend to focus on weeding out the not-so-good ones, while the mediocre ones slip through the cracks. They come in, they do their job and we tend to forget that they can actually cause the most harm to our companies.
There are many costs of putting up with mediocre employees and some of them may surprise you.
The most obvious cost you’ll face is the financial burden of these employees. You’re supplying them with a good wage and benefits, while they are putting in their time and not doing much to help you grow your company. While you can’t expect every employee to be a star, you shouldn’t settle for mediocrity either.
Each employee has the potential to impact your company for good or for bad. While mediocre employees may not be doing anything overtly bad, they still won’t help your company grow and meet company goals.
The hidden costs are a lot more insidious and far reaching. For every great employee you have, you may have ten that are just getting by. They all get paid the same and sooner or later, the great employees start to harbor resentment. Why should they work hard when everyone gets the same reward?
This has a negative impact on your overall productivity, your retention rates, the workplace morale and even your corporate culture. You want employees who are motivated to give their best and come to work because they know they can make a difference.
Fixing This Issue
The first step is recognizing you have a problem. The second is raising the bar and letting your employees know that mediocre simply isn’t good enough anymore. Start holding quarterly performance reviews at first. This may motivate a good portion of your staff to start performing at a higher level. You can eventually drop this down to annual or semi-annual reviews, but for now, you want to put your mediocre employees on notice – and keep them there.
Fixing the issue won’t happen overnight and you may need to let some people go. Just remember to stay positive, and foster a positive and productive workplace culture. Sooner or later, you’ll weed out the mediocre employees and be a much stronger organization as a result.