Earlier this year, McKinsey and Company, the prestigious worldwide management-consulting firm published its findings on searching for the next generation of business leaders. Entitled “Finding hidden leaders,” the article appeared in McKinsey Quarterly* and identified the quest for talent as “one of the biggest headaches for any organization.”
Its focus is that companies need to dig deeper to identify promising candidates – to mine the gold – that lies within. This echoes our objectives. At Corporate Class, we recognize that Executive Presence training is a valuable tool for both evaluating prospective, undeveloped candidates and cultivating their potential as future leaders.
The high cost of hiring and developing people
The article describes external recruitment – to fill key roles – as both costly and risky because of the potential for hiring cultural misfits. Today, this perspective is widely shared, as the cost of recruiting, interviewing, and orienting new hires jumps with every step up the corporate ladder.
In late 2016, CCI Senior Consultant Jim Olson** compiled a special report detailing the cost of hiring and developing people across three organizational levels, from entry-level university recruits and mid-level management to senior executives. In addition to charting the specific recruitment and onboarding expenses, it also provides insights into the other implications of hiring mistakes. For example, when a mid-level manager is the wrong fit:
- Recruiter fees, interviewing expenses, relocation costs, etc., are all lost.
- The impact on subordinates’ performance based on motivating and demotivating behavior is difficult to measure, but may be significant.
- If it becomes necessary to replace the person, typically a six-month time frame is required to repeat the recruiting process.
- When the employee deals with external suppliers and customers, the company’s reputation and the contribution by those constituents to the company’s performance may be negatively affected.
Executive Presence Training has a powerful impact on the bottom line
When an organization invests in professional development for employees, this sends a clear message: “We believe in you.” When people are provided with opportunities to display their latent, underlying potential, the outcome is often as much of a surprise to them as their leaders. They become more confident, eager and ambitious when shown their own self-worth. Executive Presence Training encourages people to strive for achievement and aspire for advancement, and organizations to find their own hidden leaders. This has a powerful impact on the bottom line.
**Jim Olson Senior Consultant, Corporate Class Inc., compiled this analysis and financial estimate in late 2016. The numbers are consistent with his experience in his corporate executive career and as Chair of Maple Leaf Foods Human Resource and Compensation committee from 2011 to 2015, where Jim continues to sit on the Board of Directors. His report, Cost of Hiring and Developing People, is available as a special supplement to the White Paper: 7 Business Benefits of Executive Presence Training.
Download the White Paper and learn more about the supplementary report