The Cost of Job Incompetence

Written by Marc on March 10th, 2007

As a business owner or entrepreneur, you hire employees to do a good job and help free up your time to make more money. From time to time, you may hire or promote someone that cannot perform their duties appropriately, or lack the competence for the position they have been assigned.

This lack of competence can affect your bottom line by lost sales, lost profit, and customer dissatisfaction. As soon as this problem has been identified, it must be dealt with immediately: either through retraining or job reassignment (through possible demotion or termination.)

An Example of the Cost of Job Competence:

Consider that you own a computer store. A customer decides to purchase a laptop. Arriving at the till, your employee tells the customer that you don?t have anymore in stock, and they can buy the display model. They receive a discount on the display (resulting in no profit for your company.) Meanwhile, if the employee had just checked the inventory, they would have seen there were five in the back. Not only do you lose money on selling the display, there would be lost sales as you would no longer have that laptop on display for sale.

Everyone makes mistakes, but those employees that consistently make mistakes may not be competent enough for their position. Be sure to look for signs of incompetence in your workforce. Signs such as repetitive mistakes, incorrect till rings, and lack of product knowledge are some examples of warning signs. Address them immediately to minimize costs to your business and public image. You will be happy you did.

Read more articles on Business Management and Entrepreneur.

One Response to “The Cost of Job Incompetence”

  1. I really like these tips and i,m going to use your ideas about incompetence.

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