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Gut instinct doesn’t cut it
03-Mar-2010
According to the results of a study by workplace psychologists OPP:
39% of leaders said they still rely on gut instinct when making hiring decisions. A quarter also admitted that whether they liked someone
personally was a major influence.
Managers mistakenly believe they know people - a view not shared by their
employees: 97% of managers say they know a great deal about their
people, while only 23% of employees share this view.
Moreover, 45% of employees said that they don't trust their manager's instincts
on staff decisions relating to them or to others. The result is a workforce
that is becoming increasingly distrustful of management decision-making.
71% of all line managers would change the people decisions they've made in the past if
given a second chance.
(The use of gut instinct is further discredited in studies done by the hiring
experts at Topgrading. Their studies show
that on average only 25% of hiring choices made in this way actually turn out to be “A”
Players - high achievers. But if you follow a proven process you can increase your hiring success rate to 90%)
Robert McHenry, CEO of OPP, said: "The results of this study make
chastening reading for any management team. Organizations have to ask
themselves why they demand objectivity and transparency in other decisions
about resources - but when it comes to people decisions they allow themselves
to fly blind?
“Managers are making the wrong people decisions more often than not, unable
even to stand by their decisions after the fact. Mistakes range from
overestimating the potential of a person to discovering information further
down the line that would have changed the decision. In any case, these
decisions are often made covertly and in the absence of hard facts.
"The economic cost of bad people decisions is well documented.
Putting the wrong people in the wrong jobs has a direct impact on productivity
and efficiency, and the cost of reversing the decision is often considerable.
"Management habits need to change. It's possible to obtain robust
and objective information on which to decide. It's the best way for
businesses to manage risk when it comes to their people, and it's a way that
every CEO should demand."
Stephen Lynch
Chief Operating Officer - Global Operations
RESULTS.com
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