Top Causes for New Hire “Failures”

Studies show that 46% of all new hires are considered “failures” within the first 18 months. Across the board – whether it’s at an executive level, or the hourly worker – all that time training and onboarding are wasted on hires that don’t stick around. 

There are plenty of reasons a new hire – whether hired externally or promoted internally – might fail. Fortunately, the majority of causes can be mitigated with enough planning and experience with the hiring process. 

In this article, we asked our recruitment experts to share the advice they give to clients about hiring in the Netherlands. Keep reading to find out the top 4 causes for new hire “failures,” and what hiring managers can do to avoid the risk. 

The Candidate Doesn’t Fit your Corporate Culture 

Corporate culture is often overlooked during the hiring process. It is challenging to evaluate soft skills and compatibility with co-workers with only a piece of paper and a “one-on-one” interview. Nonetheless, corporate culture is incredibly important – and we’re not the only ones who think so. Research by Deloitte revealed that 94% of executives believe that a distinct corporate culture is important to business success. 

But how does this relate to hiring? Maintaining a strong corporate culture can be a delicate balance – especially in smaller teams and offices where corporate culture is distilled down. One “mismatched” hire can seriously impact the overall happiness and productivity of your company. 

Our recruitment experts advise everyone to take the time to evaluate their company culture and consider the types of people they need on the team. Is your organizational structure flat, or hierarchical? What is the communication style most prevalent in your team? What works best to build trust among your employees?  

Employer and Candidate Expectations are Misaligned

Failing to align employer expectations with potential candidates is setting yourself up for wasted time on both sides. Misaligned expectations are a killer of employee engagement for those who stay, and it is the given reason for almost 50% of employees who choose to leave their role prematurely. Misaligned expectations are such a scourge for the hiring process that it even has a name: Expectation Alignment Dysfunction (EAD).

It is important to set expectations during the hiring process in order to avoid setting up your new hire for failure or disappointment. Expectations start forming from the moment the job ad is posted and continues through the on-boarding and “trial period” phase of employment.  

Our experts advise employers to write a detailed job description with a focus on the job responsibilities, rather than writing with the purpose of attracting more applications. It is also important to capture the expectations of key personnel outside the HR department — including the direct manager or even managers of other teams your new hire will be working closely. 

One of the best practices our recruiters use as they guide candidates through the hiring process involves continually explaining the job at every stage. This is especially helpful if candidates are in multiple processes at once. 

Hiring Process is Underdeveloped

Hiring processes are simultaneously very, very simple… and very, very complicated. 

The simplicity in the process is that everyone wants a job. Especially in today’s tech-driven world, it’s easier than ever to connect with your network with a quick post announcing that you’re hiring. With minimal investment, you can post an ad on LinkedIn and collect hundreds of CVs in a matter of hours. 

When it comes to talent management, “simple and cheap” hiring often ends up being anything but. Underdeveloped hiring processes is one of the most common factors leading to new hire failures – especially in growing businesses where the impact of a bad hire hits the hardest. Underdeveloped hiring processes make it riskier to hire candidates that don’t fit your culture or have differing expectations.  

It’s not always possible to develop a robust hiring process that ensures your success. In those cases, a recruitment partner can take some of the burdens off your in-house team so they can focus on evaluating candidates. 

Employee is a Poor Performer

Poor performance is cited as one of the top reasons a new hire is let go (or whose contract is not renewed) in the Netherlands. It appears as though, even if you do everything right during the hiring process, you can never know how the candidate will perform until they start. 

Our recruitment experts reveal that even “poor performance” reasoning often relates to employee personality or misaligned expectations at the employer level. Hiring under-qualified candidates is an example of ‘misaligned’ expectations that could have been identified during the hiring process. Common reasons for “poor performance” – such as frequent absenteeism or insubordination – can actually be attributed to personality.  

While there’s no fool-proof method of completely eliminating the risk of hiring a poor performer, a robust sourcing and interview process to mitigating this risk as much as possible. 

Make the most out of your Hiring Process

If you care about finding the perfect match, it’s important to go the extra mile in your hiring processes. Fortunately, you don’t need to dedicate your own internal resources to this process if you partner with a strategic recruitment firm such as Octagon Professionals. We have over 30 years of experience hiring talent across a wide range of functional areas and regularly consult with our clients not just on selection requirements, but on strategy and aligning expectations. 

If your growing business is starting to evaluate your hiring needs for the coming year, reach out to our recruitment specialists to find out how we can help you achieve your goals.