The findings were based on research conducted with 700 managers from seven different countries, plus interviews with business leaders.
The reported annual sum was calculated by working out the cost of managing poor performers .
The analysts recommend that employers try to develop more sophisticated and rigorous selection and recruitment policies, to ensure they do not merely focus on the costs of hiring a candidate and consider the wider implications of hidden costs associated with an unsuitable candidate being selected.
Identifying a competent candidate requires examining their knowledge, skills, self concepts, traits and motives that are critical for success in the target job. As most organisations discover, merely having skill and knowledge does not guarantee success.