For one thing, they recruit too many employees from outside their ranks
PERHAPS the oldest management cliché is that “people are our most important asset”. If that were true, companies would rigorously assess their own hiring practices, and record, to ensure that they are indeed recruiting the best people. Remarkably, many fail miserably at this task. Only a third of American companies check whether their recruitment process produces good employees.
In turn, the employment merry-go-round leads to an arms race, and thus higher costs. After all, employees happy with their current job are likely to need a greater inducement to move. Mr Cappelli has not discovered any evidence that hiring outsiders is more cost-effective than hiring other workers, or that passive candidates make better employees.
Alas, even when these tests are conducted, Mr Cappelli has found that managers often ignore the results. Instead companies have doubled the amount of time spent on the interview process since 2009, according to a survey by Glassdoor, a website where employees review companies.
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