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CCH® HR MANAGEMENT 7/3/06

Top mistakes companies make when hiring or promoting managers, executives revealed

The most common mistake organizations make when hiring or promoting managers and executives is failing to define and assess those roles most crucial to successful performance, according to a survey by Right Management. More than four out of 10 companies cite inadequate definition and evaluation of roles critical to successful performance as the number one mistake businesses make in hiring and promoting managers and executives, according to the survey of 273 companies.

Second, 41 percent of organizations report insufficient grooming of high-potential employees through coaching, mentoring and training programs as being yet another mistake organizations make, while third, 29 percent use overly subjective criteria and unreliable assessment tools in their hiring processes.

Fourth, 27 percent of participating organizations report focusing too much on the basic requirements of the jobs to which people are being hired or promoted and not enough emphasis on less apparent talents, such as morale or team building. Finally, giving inadequate consideration to people from outside the organization was also reported as being a hiring or promoting mistake by 20 percent of participants.

"Due to the rising cost of, and negative organizational impact from, bad hiring and promotion decisions, more workplaces are turning to formal assessment processes," said Rick Smith, Right Management senior vice president. "These include online assessment centers that use multiple assessment tools, including workplace simulations, situational judgment, cognitive ability testing, and other approaches. Formal assessment methods provide a broader picture of candidates under consideration, more consistency in management development, and people who are the best fit for the challenges of today and tomorrow," added Smith.

Lower employee morale and decreased productivity are the biggest consequences of bad hiring and promotion decisions. Other negative consequences of bad hires and promotions include: lost customers and market share, and higher training, recruitment, and severance costs, according to the survey.

For additional information on this and other HR topics, consult CCH Human Resources Management or Personnel Practices/Communications.

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