The True Cost of Hiring Yet Another Manager [Archive.org URL]

Not long ago my colleagues and I studied the cost of adding a manager or executive, and we found a kind of multiplier effect. When you hire a manager, he or she typically generates enough work to keep somebody else busy as well. Senior executives — SVPs and EVPs — are even more costly. These high-priced folks typically require support from a caravan of assistants and/or chiefs of staff. The support staff generates a lot more work for other people, too. The extra burden comes to 4.2 FTEs per hire, including the executive’s own time. We’ve found three steps to be helpful in liberating your people from the organizational mire.

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