What Causes of 80% of Employee Turnover?
In This Issue
- The Causes of 80% of Employee Turnover
- How to Discover, Advance, and Assure an Ideal Job-Talent Fit
Lack of an Ideal Job-Talent Fit Accounts for 80% of Employee Turnover
A recent Career Builder study revealed the following seven facts about making a bad hire:
- 74% of employers state they have hired the wrong person for a job.
- 35% of employers who have made a bad hire agree that they thought candidates could learn quickly, even though they didn’t have the necessary skills.
- Another 30% of employers were pressured to fill a position quickly,
- 29% had difficulties finding qualified candidates and were too focused on candidates’ skills instead of attitude.
- 54% of employers will classify an employee as a bad hire if they fail to produce the proper quality of work.
- An employee having a negative attitude follows closely at 53%, and so does an employee not working well with others at 50%.
- Another 46% of employers will categorize an employee as a bad hire if they have immediate attendance problems.
How many of these seven facts have you experienced?
The Costs of Making a Bad Hire
A recent Harvard Business Review article stated that 80% of turnover is due to bad hiring decisions. The most successful companies with lower turnover rates know the importance of hiring the right candidate the first time.
What makes these companies put much more time and effort into the hiring process?
It begins by understanding the real cost of a bad hire. Do you know the costs when you make a bad hire?
According to research from SHRM, employee replacement can cost a company between six and nine months of the departed employee’s salary. If this number is remotely accurate, the importance of hiring right the first time is a necessity, not a luxury!
The cumulative effect of hiring the wrong candidate can be staggering. Not only can it be a financial burden, but it can affect many different levels of the business. The full cost of a bad hire is higher than most people may realize and the repercussions can linger long after the employee leaves the company.
Conclusion and Solution
If more business owners and hiring managers fully understood the cost of a bad hire, there’s no doubt that more time, effort, and resources would be used up front. Here's how can improve your chances of getting an ideal job-talent fit.
Begin by establishing a goal to hire the right person the first time.
- Benchmark the talent requirements for all key positions.
- Assess candidates’ talents and competencies.
- Compare finalists' assessment results to the benchmark.
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