Is Your Company Experiencing a Series of Failed Hires? Contact an Executive Search Firm for a Consultation
The employee turnover rate is a significant concern for many companies. At the end of June 2015, for example, 2.7 million employees left their jobs voluntarily. This amounted to a 25% increase when compared to the previous two years. A 2016 Gallup poll revealed that Millennials were the “Job Hopping Generation.” At that time, this age group was more open to new employment opportunities than any other generation. This applied to six out of every ten of the participating Millennials.
There are a variety of reasons for employee turnover. In some instances this may be due to a poor skills match or the absence of effective leadership. Failed hires may also be due to a company’s overall culture, which includes a lack of diversity and employee appreciation programs.
A survey was recently conducted by Robert Half with 1,400 executives. The results showed that 36% of these executives believed that after performance issues, the most significant reason for failed hires was a poor skills match. Unclear performance objectives was considered to be the second most common factor according to 30% of these executives.
Many employees don’t believe they are receiving effective leadership. A Gallup poll revealed that just two out of every ten of the participants believed their manager encouraged them to do their best. In addition to adversely affecting morale, a lack of encouragement in this regard can also lead to employees not delivering their best work.
According to McKinsey’s research, gender and ethnically-diverse companies are more likely to have increased productivity and outperform their peers. When companies were gender-diverse, for example, the research results showed that they were 15% more likely to perform higher. Ethnically-diverse companies were actually 35% more likely to do so. When companies have an overall diverse culture, it is highly likely that this can make a significant difference in employee performance.
It’s important to note that as of the first quarter of 2017, the percentage of female Fortune 500 company CEO’s increased by five percent. At that time, there were 27 women at the head of major firms. This demonstrates, in part, that more companies have realized the importance of a diverse culture. Furthermore, it also points the willingness to to promote women to major leadership roles when they have the appropriate skills match.
If you’re launching a new business, it’s important to consider the benefits of obtaining the services of an executive search firm. The same holds true when you’re restructuring or experiencing a high turnover rate. When you contact an executive search firm, you’ll have the opportunity to learn more about all of their services. In addition to recruiting talent, for example, an executive search firm can provide human resources consulting and outplacement consulting.