Audio translation from video:
Steve Shwam here with ostechnical. Today I wanted to share a video of a study that I found to be pretty fascinating of a 50% failure rate for new hires for organizations that utilize hr as their main recruiting function. This number fascinated me is mainly because we are a technology staffing firm. That’s what we do, and that’s probably why we still exist now. Large corporations have thousands of business processes, but I doubt you’ve ever heard of a single process that has a 50% failure. This insane failure rate occurs at every job level level from managers, hourly employees all the way up to even c level executives. You don’t need to be a cfo to calculate the tremendous loss of money, the negative business impact and the lost productivity that results from each and every hiring failure. If the business processes of production, marketing, product design had anything close to these failure rates, not only with budgets get slashed, butt heads would roll on. Yet recruiting leaders march on kind of oblivious to the damage that these bad hires air doing to their organizations. To me, I thought, what could possibly be the reason for these unacceptably high failure rates for new hires? And what they found was number one. There’s no measure of cost of a bad hire. The process design isn’t scientific. They kind of go off of intuition instead of data based decision making, hiring, failure, rates and quality higher, they’re not measured. And then, lastly, which I think is a pretty important one, is hr is just not a data driven function. So I guess my final thoughts on this, although few corporations measured new, higher failure rates, a significant number also inexplicably failed to measure the on the job performance of new hires.
**Note: translation may not be 100% accurate**