Avoiding the “Bad Apple” has the greatest payoff.

An apple a day… You know what Grandma always said, and now scientists agree. A recent working paper from Harvard Business School revealed that simply avoiding a “toxic worker” doubled returns compared to hiring someone in the top 1% of productivity. The estimated cost of hiring a “rotten apple” added up to $12,489 in worker turnover. And that doesn’t even include potential litigation, regulatory penalties and reduced employee morale. The benefit of hiring a superstar? Just $5,303… One bad hire could simply prompt an early fire and rehire… Yet, at the other extreme, it can cost a company billions of dollars, as in the case of JPMorgan’s London Whale. When hiring, best you listen to Grandma’s advice about apples. Harvard Business Review, Working Paper 16-057