Hiring is Hard. Here’s Proof.

photo by dbking

Hiring is a headache.

Dr. John Sullivan’s latest post at ERE pulls together a ton of shocking numbers that should convince you we need to find a better way.

50% new executive turnover — nearly half of new executive hires quit or are fired within the first 18 months at a new employer (Source: Corporate Leadership Council).

50% of the processes users (both managers and new hires) later regret their “buying” decision (Source: The Recruiting Roundtable). In addition, 25% of new hires later regret taking their new job within one year (Source: Challenger, Gray)

66% regret hiring decisions — Nearly two-thirds of hiring managers come to regret their interview-based hiring decisions (Source: DDI)

Hiring and retaining below or even average performers have real opportunity costs because top performers can increase productivity, revenue, and profit by between 40% and 67% over average performers (Source: McKinsey & Co.)

Only a 19% success rate — only one out of five of the process output can be classified as unequivocal successes (Source: Leadership IQ).

Basically, we’re not good at hiring, we regret most of the decisions we make, there’s a big difference in contribution between average and good people and the people we hire are often unhappy we choose them.  That’s pretty damning.

A good hire requires finding someone with the skills to do the job AND the right person who can thrive in your company’s work environment.  Our guts don’t adequately assess the latter because inevitably we revert to deciding whether the candidate is one we can imagine having a beer with after work.

Again, why we created RoundPegg.  RoundPegg will objectively and rigorously identify which candidates will function best with your company’s culture, with the work team and the hiring manager.  We just released the first version of the application.  If you’d like to learn more please drop us a line at employers [at] roundpegg [dot] com.

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