Roberta Chinsky Matuson
Creating Exceptional Workplaces and Extraordinary Results
Roberta Matuson's Blog

You’re Kidding, Right? 50% of New Hires Fail

Newly hired employee packing personal belongings in box

Read this before you make another hire.

I wish I was kidding! Organizations have thousands of business processes, but I doubt that you’ve ever heard of a single process that has a 50 percent failure rate, that has been completely ignored. The recruiting process often has a failure rate of 50 percent. And I’m not just talking about this occurring at just one level of the organization. It’s happening at every job level from hourly employees, supervisors, managers, and even in the executive suite.

Here’s what’s being reported by independent sources, which is consistent across the board. The numbers don’t lie.


  • 46 percent of all new hires fail within 18 months (Source: Leadership IQ.)
  • 40-60 percent of management new hires fail within 18 months (Source: Harvard Business Review.)
  • Nearly 50 percent of executive new hires fail within 18 months (Source: The Corporate Leadership Council.)

There are many reasons why this is happening and those reasons vary by organization. Case in point. I was hired by a client who was experiencing 50 percent turnover in their sales organization. They estimated this churn was costing them over $2M a year. My client assumed they were experiencing a retention problem, when in fact the real cause of their problem was their recruitment strategy.

With my help, they discovered they were looking for talent in all the wrong places. Sure, they’d get these people to accept their offers, but within 18 months, their newly hired employees left for greener pastures. This epic failure was causing both angst and a ton of money. They implemented my recommendations and within a year’s time, their turnover was sliced in half. In real dollars, this equated to an additional $1M dropping to their bottom line, annually.

Many of you are so used to the high levels of employee turnover and disruption, that you’ve accepted this as your new reality. If you want to know exactly what this is costing you, then use my proprietary employee turnover calculator.

I can assure you that it doesn’t have to be this way. If you’re willing to invest 30-minutes of your time, I’ll provide you with a fresh perspective and some ideas that will help provide you with clarity and peace of mind on this critical issue. This one’s on the house! No fee.

Let’s start a conversation. Call me directly at 617-608-3633, or email me at to schedule a call for next week.

This entry was posted in Employee Turnover, Hiring and Recruitment, Performance Management, Profitability, Talent Acquisition and Retention, Talent Maximization and tagged , , , , . Bookmark the permalink. Follow any comments here with the RSS feed for this post. Post a comment or leave a trackback: Trackback URL.

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