What is your ROI on Management Recruitment? – And how can you improve it?

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 organisations and 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.

5 most prominent people challenges HR professionals face globally – are you experiencing these as well?

Talent acquisition is not a new concept, but acquiring the right talent and ensuring we keep them – now that’s a whole-new kettle of fish.

HR professionals work hard to ensure they identify, attract, and vet the right people while keeping those ‘right’ people engaged and moving forward within their company.

While business and employees have seen and will continue to see, positive results due to the emphasis on employee engagement, training, and retention, the processes aren’t all that easy for HR professionals to maintain and guarantee.

Our recent global survey, ‘The Future of Talent Management’, asked HR professionals what challenges they faced when it comes to talent acquisition, management, and retention – 5 prominent people challenges stood out.

 

The 5 prominent people challenges faced by HR professionals globally


Across four key industries, HR professionals seemed to be confronted with 5 prominent people challenges.

1.    Attracting and hiring the right talent

While there are many outstanding candidates, not everyone is right for your company, and attracting those that are right was proven to be a challenge for many of the HR professionals in the research. While the process to find the right person can be arduous, it’s better to wait for the right person rather than bring someone in as a ‘band aid solution.’

2.    Adapting to change

As the pace of change continues to increase, the ability to manage and adapt to change is vital. More often than not HR professionals have to reshuffle, re-arrange, re-coach, and re-skill staff to ensure they too can keep up during times of rapid change or disruption.

3.    Retaining top talent

Retaining top talent is always going to be difficult, and was considered challenging by many who participated in our research. Those people who thrive and shine in your work environment will do the same in others. Luckily, there are helpful and effective strategies that can be implemented to keep these shining stars on your team!

4.    Managers lack coaching skills

Managers that lack the ability to train and coach their teams correctly is an issue for today’s HR professionals. By giving managers the tools and processes to have coaching conversations with their teams provides an opportunity to enhance both individual skills and overall company performance.

5.    Employee engagement

Maintaining employee engagement and developing young leaders is highly important to keep staff motivated. However, this is difficult because it’s hard to know what every employee needs to remain engaged, and was a challenge faced by many HR professionals in the research.

 

Why is this important for me?

While your industry may not fall within one of the four which participated in our research, consistency suggests that these challenges are common across diverse industries, and most likely affects yours as well.

Therefore, having an in-depth understanding of these common people challenges allows you to effectively plan for issues that you might not yet have experienced, but may soon!

Keeping your company ahead of the game when it comes to talent management will not only positively affect your current employees, but help to engage the right future talent, and keep your business booming.

 

What can I do now?

If you’re unsure about the next steps you should take to leverage this research in your organisation, and maximise your employee engagement, feel free to contact Choice Career Services on 1800 823 213.

At Choice Career Services we’ve supported hundreds of organisations globally to ensure their employees are highly valued in today’s global market.

Finally, if you’d like to receive the full 2017 Global Talent Report, click here.

Today’s most valuable employee skills – do you know what they are?

For organisations to thrive and deliver on their core values, they rely on the skills and engagement of their employees. Therefore, it is crucial that their employees can attain the most valuable and sought after skills.

Ensuring an organisation’s employees are engaged and equipped to succeed means HR professionals must have the ability to identify and manage talent in today’s ever-changing employment market.

With the constant evolution of the employee marketplace, it can be difficult to keep up with the skills organisation deem to be most valuable. So what are companies looking for and how can you ensure your employees succeed?

To help answer this, we asked top Talent Managers and HR leaders, to identify the most valuable skills employees must have to be competitive in today’s market.

Why does Leadership training fail?

And what can HR Managers do about it?

When you implement a new leadership training program there is never a guarantee it will work.

A whole range of factors can contribute to the success or failure of a leadership training program. The good news is that the factors which contribute to a failure can often be managed, ensuring your leadership training can generate a return on investment.

A recent article in the Harvard Business Review, ‘Why Leadership Training Fails’ dug into how leadership training can often be a poor investment. HBR attributed this to an organisation’s structure and culture being a bottleneck for positive learning and training outcomes.

How did Ford manage their employee redundancy?

Discover what best-practice management of employee redundancy looks like.

This month the last Ford rolled off the production line in Australia.

While the powerful global brand isn’t disappearing altogether, nor its status as a significant employer of Australians, by this time next year there will be no automotive manufacturing left in Australia from any of the mainstream car companies.

Is your organisation losing half its revenue due to poor change management?

Start managing the human impact of change management and take control of the success of your organisations change initiatives.

I’m sure you’ve had the experience of sitting and listening to a new vision or strategy from the CEO. Sometimes these are a hit and you can’t wait to jump on the bus, but in some cases you can tell the impact of these changes on employees hasn’t been well considered.

Businesses need to be agile in order to remain relevant in today’s market. But this doesn’t mean overlooking the needs of employees during times of change. Without a strong roadmap to follow not only will any change initiatives struggle, but your organisation may even lose out on revenue!

The 10 Commandments of Organisational Change Management

When your organisation makes a decision about change how well prepared are you to get the ball rolling?

It’s estimated only 25% of organisational change initiatives are successful over the long term. These results invite criticism of change that can be felt throughout a company. Especially when an average of 22% of managers felt their training to support the organisational change was ineffective.