Why Your Approach to Hiring Is All Wrong.
Businesses have never done as much hiring as they do today, spent as much money doing it, or done a worse job of it! Survey after survey finds employers complaining about how difficult hiring is, perhaps because they’ve become very picky about candidates, especially in the slack employment market of the Great Recession.
But they are hiring much more than at any other time in modern history, for two reasons: – Firstly, openings are now filled by more external hires than by internal promotions. While corporations used to fill ~90% of vacancies through promotions and lateral assignments, today the figure is <33%, mainly because they don’t have to bear the cost of training and developing their employees when they recruit externally. Secondly, hiring is so difficult because retention has become tougher when Companies hire from their competitors and vice versa, which means they have to keep replacing the people that leave (i.e. 95% of hiring is done to fill existing positions caused by voluntary turnover). Indeed, LinkedIn data indicates the most common reason employees leave is career advancement—which is surely driving poor retention.
But the approach to hiring is all wrong.