An internal study of 20,000 executive searches performed by global executive search company Heidrick & Struggles found that 40 per cent of executives hired at the senior level are pushed out, fail or leave within 18 months of their start date.
This study and the data on recruitment success rates, below, are a clear indicator that businesses have numerous failures in talent acquisition management – they don’t all agree but they do all strongly indicate that something is wrong – whichever you choose – TAKE YOUR PICK – they all point in one direction:
• 70% of the external customers (applicants) and 28% of the internal customers (hiring managers) indicate they are dissatisfied with the hiring process (Source: Staffing.org).
• 25% of new hires later regret taking their new job within one year (Source: Challenger, Gray)
• 46% of new hires leave their jobs within the first year (Source: eBullpen, LLC) and 50% of current employees are actively seeking or are planning to seek a new job (Source: Deloitte).
• 46% of U.S. new hires must be classified as failures within their first 18 months (fired, pressured to quit, required disciplinary action, etc.) (Source: Leadership IQ).
• 58% of the highest-priority hires, new executives hired from the outside, fail in their new position within 18 months (Source: Michael Watkins).
• Only a 19% success rate — only one out of five successfully selected candidates can be classified as unequivocal successes (Source: Leadership IQ).
It is also widely understood that, in real terms, the actual cost of this failure may approach 2.5 times the executive’s annual package. Taken in context, the investment needed in executive coaching support, particularly where it guarantees results, is a small sum to pay to mitigate these figures.
There are numerous and varied studies from distinguished sources to support this information, and research now indicates that in order to mitigate these risks a solid support structure must be put in place to on-board the new executive.
In most walks of life there is a ‘honeymoon’ period and, for many years, new leaders and senior executives have had their ‘First three months’. Pressure to deliver in today’s business environment may well have changed this.
Newly elected presidents, prime ministers, leaders in business and senior executives have, in the past, enjoyed this period of grace. It is still true that it usually takes about this period of time before various ‘reckonings’ come into play. In today’s market with ever more impatient investors, stakeholders, internal and external critics and the heightened focus on speedy results are making this hundred days seem more like a trial rather than a honeymoon.
The Results Centre have created leadership and transformational programmes, including the ‘First 101 Days’ programme. Alan Denton coaches and mentors at the highest levels in a variety of business scenarios, including international corporations.