Senior Hiring is a risky and expensive business.
The purpose of this blog post is to explore what the key cost drivers are? As it turns out, Senior Hiring is even more expensive than figures suggest. Which presents the question isn’t it better to get it right the first time?
Typically new hires don’t come up to full effectiveness for anything up to a year, so their professional outcomes are extremely expensive during that period, viewed from a unit cost viewpoint
- if they need training, there’s training cost and lost time in the job
- everybody else’s time burnt up during their induction
- And what if they don’t turn out the way you expected when you hired them? Did you get what you thought you hired?
So researched figures for you:
- 39% of executives have considered walking away in their first three months
- 48 % feel they fit their organisation very well
- Executives said they could have been on average 50 % more productive if their start in the business had been better organised
- Only 24% of executive hires say the familiarisation scheme provided by organisations is useful
So why do we think the hiring process finishes, the day the employee walks in for day one?
Now you have to consider how it looks if it doesn’t go well…
Recent Employment Law probably gives you a likely 12-24 months to explore the new relationship, and find out if there has been a mutual mistake made. If you have made a mistake, then you are likely faced with separation (maybe at a cost) and starting all over again.
Over a 3-4 year period, the cost of resourcing the position means you spend 150%-200% of the cost if you had a steady professional in role. In some very senior hires, the impact can be so big you’d notice it in your profitability
Don’t forget, if the role is client facing, employee turnover usually has a reputational risk exposure where the impact is probably incalculable
The employee moves on and works for a direct competitor taking some piece of your Intellectual Property with them. In fact, they probably walk out with more IP than they walked in with.
A disgruntled employee might attack you on social media and through other means
How can Executive Online help?
We’ve launched an innovative recruitment system executive-intro™, which allows the hirer to accurately match candidates to the technical, behavioural and cultural requirements of a role which significantly increases the efficiency and quality of the recruitment process, resulting so far in a 96% retention rate over the first year.
Demonstrating its confidence that the system delivers every time, Executives Online is offering a guarantee to clients of a free replacement for any executive placed using the full executive-intro™ system who fails to complete their first year in role.
The system has been specifically designed to predict a candidate’s future performance and fit to a role and remove the reliance upon purely assessing past performance. By aligning our objectives with those of our clients, we have built a product that focuses upon having real impact on a client’s business results. This is changing, in a positive way, the whole emphasis of the relationships we have with our clients.
The innovative system provides a complete 360 degree view of each applicant, matched to the detailed requirements of the role. With a unique blend of technology and traditional hands-on recruitment experience, executive-intro™ provides a complete package of information including CV, consultant notes, candidate video’s, behavioural profiling, job fit matching, competency based questioning and references
In October of this year we will be launching this product in London. Its an event not to be missed. Should you be interested in attending please make contact with me as soon as possible. This will be a completely free event so invites and numbers will be limited.
Please leave a comment, let me know your thoughts on this subject, and your experiences.