Taking on the task of management recruitment is a costly and time-consuming process at the best of times. With interviews, vetting, and finally onboarding candidates, hiring a senior manager or executive can often take many months and cost thousands of dollars. Ideally, you want these new hires to hit the ground running in their new position so you can optimise your Return on Investment (ROI).
With so much already on the line, it would be disturbing to learn that the cost of management recruitment is even higher than you anticipated. A recent study has shown that the slow development of new hires costs businesses thousands more than expected.
Egon Zehnder investigated the onboarding experiences of senior managers and executives into new roles. It was discovered that approximately 60% of new hires found it took at least six months to have a full impact in their new role. Perhaps even more alarming was the fact that 20% of new hires still felt they were ineffective after nine months in their role. This means that for a senior manager or executive to become effective, a company will spend up to $90,000 per new employee.
Why does management recruitment result in struggling employees?
There are a great many challenges that come with beginning a new job, and they are only exacerbated if the role is in a senior management or executive position. The study found that the major challenges faced by these recruits were:
- Poor grasp of how the organisation works
- They didn’t fit with the culture of the organisation
- They had difficulty forging alliances and relationships with their peers
- There was a lack of understanding of the business model
It is apparent from these points that, despite every employee receiving induction into an organisation’s policies and procedures, there needs to be more time spent with the employee on a personal level.
What is going wrong with the induction process?
Inducting an employee, especially a senior manager or executive, is more than introducing them to all the key people in the office. Your organisation should be spending time with recruits to do the following:
- Plan their first 90 days
- Build their understanding of their team and capabilities
- Identify the key stakeholders in the organisation and develop an understanding of how the recruit can influence their agenda
- Undertake a simple SWAT analysis of the business to build an understanding of its key challenges
So what can you do to reduce that cost and ensure effective ROI on management recruitment?
The Next Steps
We’ve already established that the underperformance cost of a new senior manager or executive could be as much as $90,000. With this being the case, it is essential to develop programs in career development and coaching to assist new hires in building their capability quickly, in order to become the high-functioning employee you thought you were recruiting.
At Choice Career Services we’ve supported hundreds of organisations to ensure there are appropriate training and development programs in place to optimise the onboarding of new employees. For more information about how you can optimise your ROI for management recruitment call us on 1800 823 213.