[Gallup] What a manager mis-hire REALLY costs you (and how to avoid it)
What would you do if you had a business process that was failing 82% of the time? And what if this failing process was costing your company buckets of money?
According to the Gallup Business Journal, this is most likely what’s happening in your business when it comes to hiring managers.
Gallup analytics have determined that when it comes to selecting managers, “companies fail to choose the candidate with the right talent for the job 82% of the time.”
In other words, the process used by most companies to select managers and next-level leaders is failing. And these hires “cost businesses billions of dollars each year.”
Why do management mis-hires cost so dearly?
Because “managers account for at least 70% of the variance in employee engagement across business units.” Bad managers produce bad employee engagement, which produces bad performance.
If that isn’t motivating enough, consider this massive upside to good management.
“When companies can increase their number of talented managers and double the rate of engaged employees, they achieve, on average, 147% higher earnings per share than their competition,” according to Gallup.
Do you know what manager mis-hires are costing your firm? More importantly, do you know how to fix your process?
The solution begins with having data. The right data, that is.
Researchers suggest that “Conventional selection processes are a big contributor to inefficiency in management practices,” because, “they apply little science or research to find the right person for the managerial role.”
Gallup’s recommended management behaviors line up with those measured by the Teamalytics 360 Report:
Good managers “Motivate every single employee to take action and engage employees with a compelling mission and vision.” Our Energy and Expressiveness scale will measure your managers’ ability to engage, energize, and excite stakeholders at all levels.
Good managers “Have the assertiveness to drive outcomes and the ability to overcome adversity and resistance.” Our Aggressiveness and Deference scales can identify your managers’ ability to take control and push forward without overpowering others.
Good managers “Create a culture of clear accountability.” Our Criticality scale shows whether a manager demonstrates the behaviors needed to help people get better by holding them accountable for excellence in performance.
Good managers “Build relationships that create trust, open dialogue, and full transparency.” Our Nurturing scale will measure your managers’ tendency to express care and support and build emotional safety among team members.
Do you want 147% higher earnings than your competitors?
Our expert consultants can help you use utilize scientific, research-based methods to select the right people to lead your teams, from your frontline managers all the way to the corner office.
Want to see if we can improve your manager-hiring process? Contact us.
For more than 25 years, Teamalytics has leveraged neuroscience, psychometrics, and adult-learning technologies to bring out the best in Fortune 500 companies, school districts, government organizations, and professional sports teams. Our behavioral analytics tools, combined with expert coaching, help leaders solve the complex people issues that make leading teams so challenging.