A Glance at Failures in New Hires

Studies indicate that over 40% of newly hired employees will fail within the first 18 months’ (^1). The leading cause for failure appears to be an inability to accept feedback and an inability to understand and manage emotions. When looking at newly hired managers, that number increases to between 40% and 60% (^2). This can come from the employee leaving, their employment being terminated due to underperformance, a new employee requiring extensive training to bring them up to speed and a variety of other outcomes.

A failed recruitment exercise costs businesses in numerous ways, including the financial hit, the damage to team morale and the impact on your time and your business’ productivity. Hiring a staff member is an investment, and having an investment fall through means additional resources and additional headaches.

Numerous solutions to this issue have been suggested, with the major being:

• Avoiding intuition-based decision making, and relying on a scientific process;
• Designing a comprehensive interviewing process and setting realistic expectations; and
• Taking a holistic view of the company and the team to see where this role is going to fit and how it is going to add value.

By getting and focusing on the facts, you will see your success rate improve. These facts can come from a variety of sources, including research, thorough reference checks, psychological profiling/psychometric testing and a scientific process.

For a professional discussion on improving the success rate of your new hires, call us on (07) 4659 7400.   

References

1- https://www.leadershipiq.com/blogs/leadershipiq/35354241-why-new-hires-fail-emotional-intelligence-vs-skills

2- https://hbr.org/2019/05/7-ways-to-set-up-a-new-hire-for-success