If You Pay Peanuts, You Get Monkeys [Hiring]
April 20th, 2010 at 11:54 pm (Managing People)
During the economic slowdown last year, a manager had a choice between two consultants for a critical project to turnaround the prospects of his division. The first candidate was five years out of business school; his billing rate was $370 an hour. The second, more experienced candidate’s was $510 an hour. Without much deliberation, the manager hired the first candidate because he would fit in the manager’s budget. Things did not work out as well as the manager had expected. Three months later, after considerable delays and missed opportunities, the manager fired his consultant and recruited the second candidate anyway. This consultant had an earlier experience similar to the situation at hand and succeeded in his mission in due course.
The best don’t come cheap
Recruiting is the toughest responsibility of a manager. Prudent hiring processes start with a realization that talented professionals are the heart of successful organizational endeavors. Many managers simply do not take in this fact and signup those who cost the least instead.
Economic downturn or lower project budgets are no reasons for careless hiring decisions. It is exactly during though times that managers should recruit the best people. And, the best don’t come cheap.
Now, I am not saying that high-priced consultants and employees are necessarily good. The converse is not automatically true either. Market demand for talent often dictates billing rates and compensation of skilled professionals. There is often a strong reason for them being in demand and commanding premium fees. No manager dare overlook such considerations.
Suggested Reading
- Interviewing: Stale questions get stale answers
- When judging people, remember that talent is more than skin-deep
- Four telltale signs of an unhappy employee
- The puppy theory of giving feedback too late
***See other articles related to recruiting, hiring, managerial skills, interviewing


Do not get me wrong. There is enormous value in being helpful to the boss. After all, making yourself resourceful can go a long way in staying in the boss’s good graces. It can open professional opportunities and increase your access to new ideas, initiatives, and restricted information. However, there is an obvious boundary between doing favors and sucking up. Running an urgent errand when the boss is busy preparing for an important meeting or watching over his pet when he is travelling are well within reason. Compromising your values and priorities just to get on the boss’s side will not get you anywhere in the long term. Try these suggestions:
A common mistake we make in giving feedback to others is that we tend to defer corrective (negative) feedback. We put off criticism until the problem escalates or, as managers, wait until the employee’s performance review discussions. This predisposition is often rooted in the fear that negative feedback will offend the other and thus affect our rapport with the other.






A skilled manager understands how to get work done through her staff under all circumstances. She makes herself available, delegates effectively and provides appropriate feedback. She works hard to sustain an effective work environment in which her staff feels motivated and takes pleasure in their achievements.

Research and develop algorithms for automatic parameter-based design of passenger car engines and their machining process illustrations. Implement process-planning software in C++ and integrate an interface with a CAD software.
One of the leading causes of frustration and discontent for employees is the lack of clarity on what is expected on their roles. From an organization’s perspective, employees who do not understand their roles will fail to deliver.

