Organizations or their new hires regret their hiring decisions 50% of the time, costing the average organization millions in the way of lower performance, less engaged new hires, and higher turnover according to a first of its kind study by The Recruiting Roundtable, a division of the Corporate Executive Board.
The study details several contributing factors including that 40% of new hires report the information they receive about a job when they were applying was less than accurate. Overall, only half the time will organizations and new hires achieve a win-win outcome where both agree that they made the right decision.
The study included the analysis of data from more than 8,500 hiring managers and 19,000 of their most recent hires. The Roundtable identified three important reasons organization fail to consistently hire high quality candidates:
(1) they over-rely on candidates describing themselves rather than having them demonstrate what they can do,
(2) they don’t follow a consistent, evidence-based selection decision process and
(3) they fail to provide the candidate with enough information and ‘experience’ about what the job is really like.