Losses incurred by businesses while recruiting a poorly qualified manager.
In your opinion, how costly can a mistake of hiring an incompetent head of a company prove?
The economist, Eileen Appelbaum, and the sociologist, Ruth Milkman, did a research on the expenses incurred by a company in the event of recruitment of incompetent management. The results proved astonishing! This is especially true of our current situation when many companies are in need of resilient and dynamic leaders who would be able to cope with problems that the recent pandemic has caused to the business sector.
Poor recruitment is always very costly. Incompetent managers have a bearing on everyone working with you, as well as on your product and its quality.
A blow to productivity and morale
Managers have to be efficient employees. According to analysts from the recruitment sector, in the past 30 years the number of senior management positions tripled as the competition in the business sector is becoming ever more fierce, while organizations require senior managers who are able to scale up, introducing innovations and making progress.
Therefore, what happens when the recruitment process proves a blunder? Productivity is the first thing that bears the brunt. According to a recent research carried out by experts from the recruitment sector, the level of productivity drops by 39% as a result of poor recruitment.
We all know the expression ‚the rotten apple injures its neighbors‘. In this case, ‚the rotten apple‘ is the manager, regardless of the form of their wrong decisions at work. Their example is usually followed by others, which affects the company’s goals. If employees do not feel involved, their morale gets steadily low, which, in turn, impacts on their dedication to work. The research has revealed that mistakes made while headhunting a senior manager can lower the team’s morale by 27%.
Loss of employees and clients
Employees leave managers, not companies. This old age is quite revenant even today. A research conducted by analysts from the recruitment sector has shown that 57% of employees resign due to issues with the manager to whom they were subordinated.
As a matter of fact, one of the biggest mistakes made by managers lies in their inclination towards poor management of people, which makes the employees leave. ‚The way leaders can manage their emotions and evoke emotions from other people is the most powerful driving force behind retaining talents‘, believes Stephanie Neal, Director of the Center for Analytics and Behavioral Research.
The resignation of employees provokes the chain reaction. Projects remain unfinished. Productivity and the quality of the team are affected. Clients will soon observe a lower level of service. Bad employees, especially those working directly with clients, may exert a negative influence on relations with them, should the latter be not treated properly. Such relations are not easy to reestablish after the clients’ trust has been abused.
Mistakes made by senior managers may cause much damage in a variety of ways. The may blight production or stain customer reputation, weaken the brand, increase the stress and burnout level.
However, there is no guarantee that the head of the team will live up to expectations. Such a mistake would be astonishingly costly.
Many organizations hire incompetent leaders since they lack complex methodology needed in the recruitment process. One of the key decisions needed to avoid such a costly trap lies in finding a consulting company which would help find the right managers. Experts of such a company have good knowledge and skills to recruit top managers. These companies also have consultants specializing in particular areas, which lets them facilitate the recruitment procedure. After all, their experience can save you months of work and a lot of money. They can also find the right person that will help you manage your business.
