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Managers Stick with Poor Performers Rather Than Hire New Faces

According to a new survey of 200 U.S. hiring managers, nearly 70% of respondents said they would rather hold on to a poor performer rather than deal with the uncertainty of hiring a new employee. In short, a majority of managers felt more daunted by the prospect of hiring a new person than they did about managing an underperformer they already know. As a result, companies are placing renewed emphasis on "working smarter" during the hiring process to avoid the consequences of a bad hire. In addition, companies are redoubling efforts to retain key staff, whether through bonuses or additional training.

In difficult economic environments, organizations naturally reassess how existing talent can be used to create competitive advantage. As a result, organizations are placing more emphasis on how to 'work smarter' during the hiring process as well as how to avoid the costs of a poor decision. After all, once an employee has been hired, bad decisions cannot easily be undone, making it easier simply to do nothing. According to some estimates, bad hiring costs U.S firms millions of dollars in lower performance, less engaged workers and higher staff turnover, with many managers quickly losing enthusiasm for, and trust in, the abilities of their new hires.

Motivating and continuing to challenge your staff, whether existing employees or new hires, is absolutely imperative. A recent survey found U.S managers were now spending more time working on retaining key staff, including paying them bonuses and sending them on training courses. Among managers, the general consensus was that, even if a person appears to be a perfect fit on paper, you are always taking a chance with a new hire. In some cases, there could be a two-year time lag before the new worker is up to speed.

From Management Issues
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