Studies have shown that 84% of new hires will “disappoint” their employers in the first year on the job. That’s six out of seven employees.
When you consider that the Department of Labor estimates the minimum cost of a “mis-hire” is $11,713, the wrong people are surely the greatest liability to your productivity, profitability and continued success. And that figure of $11K only tells half of the story.
When you factor in the personnel issues that stem from the wrong people on your team like conflict, apathy, poor work-ethic, theft, etc., you can double that figure.
Then, when you factor in the lost sales, opportunities and customers that stem from errors and poor service, triple that figure. Anybody that has actually measured what a mis-hire has cost them, will say this figure is more accurate.
But don’t forget, there is cost in replacing the employee also. Running ads, phone screening, interviewing and background checks can all add up to literally eliminate your revenues and cause your business to fail.
This is why it is so important to assure that your new hires have “Job Fit” before hiring them. And yes, it is possible to do this…
The 6 Reasons Employees Fail (& what to do about it)
If an employee fails to “fit” just one of the following five areas, they will not reach your productivity expectations. The more areas they fail to fit, the bigger the disaster to your productivity, teamwork and bottom-line they will be.
#1. No Culture Fit
Culture has to do with integrity, reliability and work-ethic. Another word for this is attitude. If a new hire doesn’t have the same internal vision or mission as the company, they will fail to show up for work on time, give you a full days work for your full days pay and will not respect the property of the company, their co-workers or your clients.
#2. No Team Fit
To maintain teamwork, unity and alignment, employees must fit the dynamics of your team. If you want a stress, conflict and drama free atmosphere, you must hire employees that can get along with others, follow rules and respect their leaders. But you’d be surprised, not every company wants this. There are some companies where questioning the status quo and challenging others is appreciated; and when this is the case, you need to hire people who are comfortable doing so. Either way, in business, opposites usually don’t attract.
#3. No Skill Fit
Skill here has to do with the natural competencies of the employee. In other words, their competency to communicate effectively, learn at the pace required, continue to process new information and be accurate. Everybody has hired someone with the training, experience and education to do the job, but they’ve later failed in your organization. This is because they didn’t have the natural competencies, or skills required to succeed in the job YOU hired them to do.
#4. No Interest Fit
Almost as important as skill fit, is interest fit. Having similar interests to the job leads to job satisfaction. This is imperative for it then leads to internal motivation, natural productivity and profitability for the company. If someone is most interested in mechanical and administrative duties, but you’ve hired them to service your clients, lead others or create systems, it will take on-going micro-management, external motivation and coaching to get this person to succeed. Don’t you have more important things to do?
#5. No Behavior Fit
This is the most important area in deciding success or failure in the job. Natural behaviors, or traits and comfort level, have such a huge effect that failing to fit just one of the required behaviors of the job can lead to failure. You have surely seen this in an employee that was just about perfect but by not being able to multi-task, work independently or make decisions for example, they never met your expectations.