CASE STUDIES

Most hiring managers have experienced unsuccessful employments that didn’t turn out as expected and terminated within the first year of employment. This can be very frustrating and results in consequences for the bottom line, the actual position and the surroundings like customers, colleagues and managers. The following cases have all been inspired from my own working life. They illustrate the consequences that may occur if the employment ends unexpectedly.

CASE STUDY #1

Analysis of the job – Company, culture, personal profile and position – Employee who handed in her notice within the first three months of employment

A medium-sized international company employed a new hire for their financial department. Unfortunately, the employee quit her job just before the first three months had passed. The reason was she didn’t feel that she matched the culture of the group and had decided to go back to her former job. She didn’t like the atmosphere– there was too much gossip.

Financial consequences of a notice early on in the working relationship

  • Loss of efficiency and work effort – from the time the employee decides to find a new job, research shows that the working effort starts to go down
  • Often, the position is vacant at least one month until a new hire starts the job, meaning no or little efficiency during that month
  • It will take a while until the new employee is 100% effective–between 3-12 months according to position
  • Loss of goodwill
  • Costs related to recruitment, meaning working hours for HR and hiring manager, including posting and expenses to recruiting company or headhunter
  • Expenses related to peer-to-peer training
  • Costs originating from lack of effectiveness due to little job satisfaction

Future focus points to help secure longer-lasting working relationships

  • Job analysis–in particular the part on culture
  • Personality test–match between candidate and group culture
  • Job interview–clarification on expectations between company and candidate

CASE STUDY #2

Case as part of the recruitment – Employer had to dismiss employee within the first six months of employment

A minor course management company hired a new employee for an extroverted role as trainer, and based on CV and interviews the recruiting team believed that it was a good match even though he seemed as a very retracted personality during the interviews. But as it appeared from the CV he had been working as a trainer at other companies they believed this was due to the typical job interview nervousness. After some months, the company unfortunately saw no other possibility but to fire him due to customer complaints. It appeared that he couldn’t live up to customers’ expectations of an open and extroverted trainer.

Financial consequences of a dismissal early on in the working relationship

  • Often, the position is vacant at least one month until a new hire starts the job, meaning no or little efficiency during that month
  • It will take a while until the new employee is 100% effective–between 3-12 months according to position
  • Costs related to recruitment, meaning working hours for HR and hiring manager, including posting or recruiting company or headhunter
  • Expenses related to peer-to-peer training once again

Future focus points to help secure longer-lasting working relationships

  • Secure more objective job interviews with case(s) on possible future job tasks
  • Be aware of bias that can lead to wrong assumptions
  • Analysis and comparison of company culture and candidate’s personality

CASE STUDY #3

Introduction of new employees

Financial consequences of a lack of introduction

When a new employee arrives for his first day of work at an international company, his colleagues greet him warmly, but he finds that his working desk has not been set up. The necessary equipment has not been ordered, and no one has been assigned to help him during his first few weeks.

What impeded a successful start in his new job?

  • Fourteen days passed until his PC was delivered. He borrowed another PC for the first two weeks, and he himself communicated with the help desk to install the necessary programs and databases, including deciding which user profile to set up
  • One month passed until he had a fully functional PC
  • One week passed until his mobile phone arrived. Until then, he used his own
  • Because no one has been assigned to help him, he must ask questions of random colleagues, who refer him to other colleagues until he finds the answers he needs
  • A lack of information, including organisation and company rules, delays his work
  • He must seek information about the company on his own

An estimation of his efficiency within the first three months

First month: 25%

Second month: 75%

Third month: 85%

What are the company’s expenses?

A fictional but realistic monthly salary is 60,000 Danish kroner. It is estimated that the costs attributed to managers and colleagues helping the new hire are approximately half his monthly pay.

The costs are as per the following:

New employee–costs in DKK

Manager and colleagues – costs in DKK

New employee, manager and colleagues– total costs in DKK

First month

45,000

22,500

Second month

15,000

7,500

Third month

9,000

4,500

Total costs

69,000

34,500

103,500

What can be done differently next time?

  • Order the PC and mobile phone ahead of time and secure the setup so that on his first day, the new hire is ready to log in.
  • Send relevant and non-confidential company information to the employee so he can read it before he begins.
  • Appoint a colleague to reply to his questions, help with new tasks, etc. Prepare an introduction programme which helps the new employee learn about the company and its culture as well as meet relevant colleagues

What would the equation look like if the new hire had been introduced to the job?

If the company had considered and implemented ways to make the new hire’s experience easier, his efficiency, in particular during the first month, could have been far higher.

Estimated new efficiency using an onboarding program:

First month: 60%

Second month: 80%

Third month: 90%

New employee–costs in DKK

Manager and colleagues – costs in DKK

New employee, manager and colleagues – total costs in DKK

First month

24,000

12,500

Second month

12,000

6,000

Third month

6,000

3,500

Total costs

42,000

21,500

63,500

Consequently, for this new employee, the estimated savings that result from an effective introduction is 40,500 Danish kroner.

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