Dr. Schmidt was kind enough to share a study his organization completed in 2008 about hiring decisions. Unfortunately the results weren't much better than those I reported in my post on March 18.
The Recruiting Roundtable study revealed that both organizations and candidates are guilty of making bad choices, with more than 30% of hiring managers and close to 25% of new hires second-guessing their decision.
In one out of every two hiring decisions, the organization or the candidate made the wrong choice, costing organizations millions in lower performance, lower engagement, and higher turnover. In a typical organization hiring approximately 2,500 hires a year, these poor decisions amount to almost $30 million in additional turnover and underperformance.
Both organizations and candidates are guilty of making these bad choices, with more than 30% of hiring managers and close to 25% of new hires second-guessing their decision.
Only 50% of selection decisions are "win-win"-where both the candidate and the organization made the right choice- resulting in lower performing and less engaged new hires, as well as higher turnover.
In addition, one quarter of new hires admit to being less than honest during the selection decision, and only 30% of hiring managers report they were able to obtain accurate information on candidate skills.