A study by Leadership IQ found that “46% of hires are “mis-hires.”
That’s quite a significant figure which has severe implications on productivity, culture and overall business performance.
The classification of a mis-hire is a new employee who leaves the business within 18 months.
When I first read this statistic, it stuck with me, and I wondered how this explicitly related to the Finance and Accounting profession.
As a CFO, you need to surround yourself with a top-performing team who’s success determines your success. Having a strong team allows you to focus on adding value to the company and ultimately helps you grow your career.
I met with 30 CFO’s within a month and asked: “Of all your hires, how many left within the first 18months?”
……I was astounded that the mis-hire percentage was a lot higher than 46%, but sadly, most that I asked weren’t. And even more, concerning was the feedback regarding the number of current new hires who were on track to achieve mis-hires status.
Unfortunately, I received comment likes;
“I hired my FC just under 12 months ago, and she is still not up and running. I am still helping the team with base-level financial reporting” – CFO.
“I have a lean team, but my Senior Accountant is not a senior, and I find that I am down in detail and not adding value to the business” – CFO.
“I recently hired a Finance Analyst, and he is six months into the role, and I don’t think he is going to get there. I have tried and am supporting him
100%, but I don’t see this working”- CFO.
What is the impact of a Mis-hire?
Mis-hires are a shared problem amongst CFO’s, that has a significant impact on their success and careers.
When there is underperformance in their team, CFO’s move to a reactive state and find themselves stuck in detail, working longer hours with increased stress levels that impacts life outside work.
Why do Mis-Hires Happen?
1- There is no clear, concise or compelling Business Value Proposition (BVP) outlining the value drivers of the role to the organisation and the performance profile of a top performer.
2- CFO’s have to choose the best available from a poor selection as the highest performers are performing in their roles elsewhere, not searching for new ones.
3 – There isn’t a well-defined selection process that truly tests and showcases the best performers against the BVP.
4 – To much is left to chance and hoping for the best without due consideration for the impact on business success and CFO’s careers.
The good news is, mis-hires are entirely avoidable.
Using the Top Performer Business Elevation System, I work with CFO’s to eliminate mis-hires, drive business performance and elevate their careers.