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Where have all the good employees gone?

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Where have all the good employees gone?

New research shows again that the “talent gap” is a serious problem; 45% of middle market firms identify as “biggest problem.”

New research from human resources consultancy PI Worldwide confirms that employers are struggling to find talent for open positions.  In fact, 65% of small firms, 45% of middle market firms and 40% of large companies saying that it is their biggest problem.

"The survey data points to a growing need to supplement traditional thinking when it comes to selecting qualified candidates."

With the unemployment rate down to 5.3%, hiring and retaining talent continues to be a growing problem for employers. The US Department of Labor estimates that the average cost of a bad hire can equal between 25% and 30% of that hire's first year earnings – reinforcing that many organizations literally cannot afford to make a bad hire.

The survey data revealed that when looking to bring in new hires, most organizations are focusing on the expected areas of candidates' skills, experience, and education. However, companies of all sizes are not including "soft" criteria, such as personalities and behaviors, as part of their job descriptions. This means they are often not putting the right emphasis on equally critical areas (such as motivating drives) and an individual's characteristics that are important for success.  As a result, they are inadvertently narrowing their own candidate pools by concentrating on only the "hard" criteria.

"The survey data points to a growing need to supplement traditional thinking when it comes to selecting qualified candidates," said Mike Zani, CEO of PI Worldwide. "Today, most employers continue to rely on unstructured interviews and previous experience as the predominant method to determine fit. While these are important, insights from behavioral and cognitive assessments can be significantly more accurate in predicting how well a candidate will perform within a specific role, culture, and ultimately how well they will support strategic initiatives."

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