Why do 46% of hires fail within the first 18 months?

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The answer to the question above could save your organization a good deal of money in employee turnover costs.

As reported in HR Executive magazine, Leadership IQ concluded a three year study of more than 5,200 hiring managers from 312 public and private organizations.  During this period the managers hired over 20,000 employees.  The results showed that while 46% of new hires failed, only 19% went on to achieve unequivocal success.  This is
perhaps not the most startling result of the survey.  The reasons for failing were surprising.  Just eleven percent of the employees failed because they lacked the technical competency to perform the job.  In all other instances the candidate’s
failure was the result of behavioral inadequacies:

  • 26% could not accept and implement feedback from superiors
  • 23% were unable to understand and manage emotions
  • 17% lacked the necessary motivation to excel and
  • 15% did not have the right temperament for the position

During the hiring process, a manager’s natural inclination is to hire based on the candidate’s technical skills.  The study however reveals that most hires fail due to a mis-match between the candidate’s personality and the job.  Mark Murphy, CEO of Leadership IQ, explains that most hiring managers lack the training to accurately read and assess candidates.  Though technical competence is relatively easy to identify, the behavioral make-up of a candidate is harder to determine.

Today, many organizations are turning to pre-employment behavioral assessments
to aid in pinpointing problematic on-the-job behaviors.  Most assessments provide interview questions for the hiring manager to ask of the candidate during the interview.  These behaviorally based interview questions help determine a candidate’s coachability, emotions and motivation to excel.  When considering the high cost of
replacing an employee, can your organization afford not to re-evaluate its
hiring process and implement one of these tools?

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