There are a variety of issues that face companies today. Some, for example, may not be as diverse as they could be, while others lack strong, effective leadership. Another issue that can impact a company’s overall success can be linked to a lack of employee appreciation and encouragement. These and other issues can potentially contribute to failed hires.
At the end of June 2015, 2.7 million individuals left their jobs voluntarily. This was a 25% increase from 2013, and continues to be a matter of concern within various industries. There are, of course, different reasons why these individuals chose to leave their positions. In many instances, it may be due to their receiving a better job offer.
A 2016 Gallup poll found that Millennials in particular are consistently open to new positions. As a result, this age group is considered to be the “Job Hopping Generation.” Apparently, six out of ten Millennial employees will consider new positions while they’re currently employed. This has proven to be more than any other generation to date.
According to a survey recently conducted by Robert Half, there are two significant reasons why failed hires occur. The 1,400 executives that participated in this survey indicated that while performance issues were a concern, 36% of their failed hires were due to a poor skills match. Unclear performance objectives were listed by 30% of the participants as a reason for failed hires. These and other issues may point to a lack of effective recruiting and management skills.
Employees may also choose to leave when their company isn’t gender and/or ethnically-diverse. When a company is diverse, as indicated by McKinsey’s research, it can make a significant impact on its overall performance. This is particularly the case when compared to a company’s non-diverse counterparts. Gender-diverse companies have demonstrated that they are more likely to outperform their counterparts by 15%. When a company is ethnically-diverse, it is 35% more likely to do so. It makes sense to consider the positive impact that a gender and ethnically-diverse company could have.
Yet another reason why employees may leave is because they are just not happy working at that particular company. This could be due to not receiving encouragement to do their best work by their managers. A Gallup poll found that just two out of ten of the workers they surveyed indicated that their managers encouraged them to do their best. Furthermore, when employees aren’t acknowledged or appreciated, this can also lead to failed hires. When companies did chose to initiate employee recognition programs, 86% reported that their workers were notably happier.
If your company has experienced a series of failed hires, it may be time to use an executive search consultant service. Working with an executive search consultant service can also be beneficial if you’re in the process of expanding or restructuring your company. When you outsource to an executive search consultant service, this decision can provide your company with a variety of valuable services. In addition to talent acquisition services, these professionals can also offer human resources and restructuring consulting.