We Need an Improvement Methodology for Human Resources

This is a little scary… “Only 21 percent of CEOs feel they get their money’s worth from those they hire. ” And a survey of top HR executives at 25 of the global top 50 found that 80 percent of external hires were disappointments and promotions came in little better at 75 percent. According to the US Department of Labor, the average cost of a bad hiring decision can equal 30 percent of the first year’s compensation. Some metrics report the cost as up to five times the first year’s compensation.

That’s some of what we learned in Why Most Leaders Fail at Selecting and Hiring the Right People, a session of ExecuNet Master Class in which Mike Zani, CEO of The Predictive Index, examined why failed human capital management practices of CEOs are preventing many organizations from having their mission and vision realized.

Most interviewers don’t have the tools to assess the behavioral and cognitive aspects of candidates.

Interviews primarily focus on education, knowledge, skills, and experience; this is only six percent predictive of workplace performance. But if behavioral and cogitative assessments are part of the interview, that percentage increases to 51 percent. The behavioral and cognitive information can be used to better structure the interview to assess cultural fit.

Listen to this excerpt from the Master Class to hear Mike talk about why you need “a valid method to decode the human.”



William Flamme

William Flamme

William Flamme is ExecuNet's Marketing Content Manager, where he is responsible for developing engaging career, job search, and leadership insight and delivering executive-level content across the various properties under the ExecuNet brand. Prior to joining ExecuNet in 2008, Will earned a master's degree in education and taught fifth grade and sixth grade. As a teacher, he deepened his appreciation for the written word and mastered skills necessary for managing writers who sometimes view deadlines as homework.

1 Reply to "We Need an Improvement Methodology for Human Resources"

  • Brian Haimovitz
    November 17, 2016 (9:58 am)

    I’m amazed that several CEOs hire incompetent staff to review resumes. I’m a former CEO without a degree and found outside reps main problem was a lack of understanding by their CEO had no concept of sales motivation, would make salesman spend their time doing data entry in the field instead of customer service doing it so they could sell or even worse, had customer service take an order from a client then make it a house account not recognizing a reps commission or territory. The CEO would think he’s saving money but the outsides reps value would be to up sell or cross sell other products the customer service had no concept about.