Philadelphia, PA (PRWEB) December 8, 2005 -- A new study from Business 21 Publishing shows that only about a quarter of HR executives feel their companies manage people transitions effectively.
About 20% said their companies were ineffective at ensuring successful transitions -- that is, onboarding new talent, as well as helping promoted or transferred employees adjust to new roles. Just over 50% said they do "okay," but that many employees fail because they don't get enough management attention.
Why does it matter? Because the cost of failed transitions is huge. Studies have shown that the cost of a failed hire is two to six times the person's salary. Obviously, the more senior the position, the more costly the mistake. Failed promotions cost a little less because they often don't involve recruitment costs, but that's not where the big losses occur. Your real hits come in:
1. Lost productivity. Michael Watkins, author of the best-selling book "The First 90 Days," says the breakeven point for transitioning leaders is 6.2 months. That's the point where they've become sufficiently productive to start adding value. What's worse, during a transition a typical leader decreases the productivity of the 12.4 people he or she impacts on the job day-to-day. When a transitioning leader fails, you get a double whammy: You incur decreased productivity department-wide during the weeks or months it took the person to fail, then you have to start over again with a new person. The cost can be staggering.
2. Employee attrition. What does it say about your company when a transitioning leader fails? If the person is a complete loser, it says the people who run your recruitment process are incompetent. Even if the person is talented but placed in the wrong role, employees get the same message. Since they're the ones who end up suffering -- they endure the confusion of a misrun department, they have to work harder, and they miss out on performance-based incentives -- many put their resumes on the street and find greener pastures.
To see full survey results and learn what HR professionals can do to help, go to http://www.b21pubs.com/hrintellcenter/Leadership/leadershiparticles/managing-transitions-study.asp
Press Contact: Stephen Meyer
Company Name: BUSINESS 21 PUBLISHING
Email: email protected from spam bots
Phone: 484479705
Website: www.b21pubs.com
More Information: http://www.prweb.com/releases/2005/12/prweb319395.htm