Thank goodness that the Tour de France and the Olympics are over, we can finally get some sleep and go back to a relatively normal life. Congratulations to the Brit’s as well on a safe and spectacular London Games. UK bagged 65 medals of which 29 where gold which I am sure would have added to the atmosphere in the arenas for the lucky ones attending live. In Atlanta in 1996 UK won only 1 gold medal, which prompted a huge cash injection into sport, funding the world’s best coaches, nutritionists, psychologists and equipment etc. The net return 4 years later in Sydney 2000 gave them 11 gold medals. “What’s your point here Phil”, I hear you saying. Well the same principal applies to us in business, if we spend the money, and recruit the best individuals for critical roles we have in our organisation, we then have a big part of the formula for success secured. Having the best team within your business is critical, and paying a little more to acquire the best individuals will reflect positively on the bottom line as long as these top performers have the tools (like the Olympic training facilities and equipment) and support required to do the job. In the Olympic example above it is no co-incidence that the sports that received the most amount of funding received the most amount of medals. (Even though it probably is a case of the chicken and the egg scenario as well)
There a lot of companies that I come into contact with that continue to pay poorly; they always attract mediocre underperforming staff. If by some stroke of good luck they do engage some good performers, those individuals don’t stay for long. These companies have a huge attrition rate, an apathetic culture and more often than not supply a sub quality product or service. A bit like some of the underperforming Olympic teams.