CEO of Sterling Management Systems Discusses Costs of Employee Turnover

Kevin Wilson, CEO of Sterling Management Systems in Glendale, California talks about the hidden costs of hiring the wrong employees, and offers solutions to recruit quality candidates.

One of the biggest costs companies face is that of their personnel. Kevin Wilson of Sterling Management Systems stresses the importance of understanding that these costs come from obvious sources like payrolls and benefits, but also from more hidden costs associated with underperforming or destructive employees.

“Inefficient and unproductive employees can cost a business between 5 and 10 times their salary,” Kevin says. “For example, if an employee’s salary is $50,000 a year and they are not performing – or are damaging the company with inefficiency — that company could be losing as much as $500,000 in revenue or lost customers.”

These figures are borne out by a number of case studies and statistical surveys of affected businesses, and many companies do not truly understand the impact such employees may have on the bottom line. Companies can lose clients from a variety of factors, from botched orders or paperwork to uncourteous behavior on the part of the sales team. In addition, other factors may be at play. “Imagine employees spending time surfing the web or wasting work hours making personal phone calls,” Kevin adds. “These behaviors get in the way of efficiency at work, and can negatively impact the overall function of the company.” Employees who waste time chatting with coworkers or demonstrating ignorance for processes or systems can cause other members of the workforce to set aside their own tasks, delaying orders or slowing down production. Again, this sort of inefficiency can cripple a business over a short amount of time.

“There are many solutions to these problems,” Kevin states. “Overwhelmingly, having the right personnel in place is the best long-term solution to avoid these problems from the start.” It is crucial that the human resources staff finds the right candidates to begin with, combing through resumes and background checks to locate the best employees for the job at hand. Also, potential candidates can and should be given aptitude tests or other performance tests to ensure that they have the skills needed to perform at a high level. Finally, the “working interview” or temporary hiring status can quickly weed out the underperformers, clearing them out before they’ve had a chance to damage a company’s revenue or reputation.

For more information, visit Sterling on the web at, or contact Kevin Wilson at

About: Headquartered in Glendale, California, Sterling the nation’s premier practice management consulting firms. It is the largest firm of its kind in the United States. With training of over 500,000 hours and nearly 200,000 clients, the company has helped many practices achieve outstanding performance increases. Sterling has received over 75 awards, both nationally and internationally, and has twice been ranked as one of America’s fastest-growing privately-held companies by the prestigious Inc. Magazine.

Contact Info:
Name: Kevin Wilson
Phone: 8182411144
Organization: Sterling

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Release ID: 90654