According to a new blog post over at the official American Society for Training and Development (ASTD ) blog, less than 36 percent of executives hired from outside an organization will succeed and perform well in their new jobs. About 30 percent of new managers and executives fail at their new jobs and leave within 18 months. Similarly, a Harvard Business School report estimated a failure rate between 40 and 60 percent for all U.S. executives in 2003.
Regardless of the current economic state, most small and midsized businesses can’t afford a new-manager fail. Even if you don’t take into consideration the many thousands of dollars it costs to fill a managerial position, the amount of collateral damage poor supervisory performance can have on your business’s production, image and employee morale can be staggering, even devastating.
The ramifications are significant. Losing an employee can cost as much as three times the person’s salary, according to estimates from the HR consulting firm The Wynhurst Group. The cost of losing an executive goes well beyond financial, however, and these costs may be more difficult to overcome. Employees can lose trust and confidence in their leadership teams which can affect morale, turnover, service, quality, processes and much more.
So what’s the best way to avoid this pitfall?
We think one of the absolutely best ways to ensure that a new manager is successful in your company is to make sure you know exactly what type of person you need to hire in the first place. That’s a vital function of the pre-hire process. What are the essential and accurate job specifications a candidate needs to bring to your company so that everybody involved is a winner? If you don’t know that, well, you will probably be relying as much on luck as on anything else.
hireVision can assist you with all of your pre-hire work. Our revolutionary DirectView services act as a professional extension of your organization, integrating with your unique culture, industry and management style, yet remaining focused on your company’s specific hiring goals. Contact us today for an honest discussion about your pre-hiring needs.