Research Finds a Mis-Hiring Epidemic in the USA Costing Billions Each Year
It only validates what we are saying in this interview.
Dr. Michael Lorence vetted Topgrading Case Studies in his Georgia State University dissertation entitled:
The Impact Of Systematically Hiring Top Talent: A Study of Topgrading As A Rigorous Employee Selection Bundle.
Lorence’s dissertation runs 148 pages and it analyzes Topgrading a many ways, relating his analyses to decades of academic research on hiring.
Among his findings:
Summary: Topgrading hiring consists of 12 recommended hiring steps, and Lorence’s analysis concludes that all 12 contribute value (explained below).
Research on what helps make companies money shows that selection “bundles” (a combination of methods) are important if they do one or more of 3 things:
- Tap the skills and knowledge of candidates
- Tap the motivation/commitment of candidates
- Integrate HR strategy with business strategy
From Chapter V: Discussion of Findings
This investigation was motivated by the impact of the mis-hires epidemic in the United States.
Hiring managers mis-hire approximately 70% to 80% of the time across all industries (Smart 2005).
This mis-hiring carries with it an associated annual cost of approximately $864.5 billion when accounting for the cost of mis-hire rate, the total number of people hired in the U.S. annually, and the average salary of the U.S. workers.
This computes to approximately 5.28% of the total GDP for the United States in 2013 (Sousa 2013).
In my interview with David Osborne he reveals his powerful system and technology for recruiting A Grade Top Performers for Management and Sales Teams.
The cost of getting hiring wrong is massive – sales costs, burnt customer costs, productivity costs, efficiency costs, training costs etc etc..
FastCompany.com have done a terrific graphic on this
DON’T TRY TO TRAIN YOUR WAY OUT OF A BAD HIRING SITUATION
We see it all too often, Managers hoping to Train their way out of a Bad Hiring decision.
It’s hard work on the Trainers and a very unproductive use of capital, time, resources and good training.
Fast Track the Turnaround success with proven Science and Strategies.
Find out more about our 5 Step Best Business Selection – Induction – Training Strategy.
Source of Dr. Lorence study : Topgrading.com