Middle managers, a wrong hire costs between 35 and 45 thousand euro

A wrong hire is the most counterproductive and costly thing that can happen to a company. When it comes to middle managers even EUR 45,000. If it is true that the labour market is characterised by a persistent mismatch between demand and supply of labour often due to a lack of technical skills, it is even more true that a wrong hire can cost those who make it very dearly. Valerie Schena Ehrenberger, ceo of Valtellina Lavoro, a personnel search and selection company and also vice-president of Assoconsult and president of Eccsa (confederation of search and selection companies), explains how much the labour market has changed radically in recent years. According to an assessment by Valtellina Lavoro, employing an unsuitable resource who perhaps leaves the company after a short time has an impact not only in terms of climate, but also economically. For a middle management figure with a gross annual salary of 40,000 euro who leaves the company within six months, the bill falls in a range between 35,000 and 45,000 euro. The company cost, administrative costs, training costs and the cost of the recruiting process have to be taken into account. Then there are the costs for termination, such as severance, which, even for short periods, is now quite common, and for overtime: with one resource less, the people in the company will have to cover the void left by the person leaving. And then there are all the indirect and less tangible costs such as team demotivation, lack of productivity and reduced market attractiveness, which increase when the turnover rate is very high.

In a context that accelerates with new technologies and the introduction of artificial intelligence, so-called soft skills are becoming increasingly important. And artificial intelligence can do very little about these, even in the search and selection of people, where today an ever closer balance between technical competences and human skills is demanded. "When a selection process starts,' Schena Ehrenberger points out, 'the soft skills required almost always include team work, adaptability, leadership, communication and problem solving. However, these skills are often included in the advertisement, but not clarified: does problem solving, for example, mean being able to quickly apply an already defined procedure or being able to react creatively and proactively, taking responsibility? Without a precise definition, the assessment risks being reduced to mere impressions which, by definition, are subjective, can be subject to even unconscious biases, and can make the process and the entry of a new resource into the company unsuccessful'.

In search and selection there is no shortage of unconscious bias, implicit prejudices, and the first step to avoid them is precisely the structured interview, with questions and evaluation criteria defined beforehand. It is not from a casual chat that one can gather useful information to predict a person's behaviour in a given context. Therefore, to observe the candidate in action, it may be useful to supplement the interview with situational rehearsals and role plays, such as a difficult customer, a complex meeting, a conflict, a changing priority. It is in these borderline contexts that communication, listening, negotiation and stress management skills emerge in the field. Psycho-aptitude tests, while not always leading to granite conclusions, are also important, provided, however, that the answers are competently interpreted.

When the role to be filled is complex or involves high responsibilities, both individual and group assessment may prove to be the most effective method because it combines several tools and observations and returns a clear map of strengths and conditions in which the person performs best. In all cases, what moves the needle on the performance scale remains motivation. Someone with excellent technical knowledge and skills but low motivation will never be able to express his or her full potential.

But what really moves the needle between potential and actual performance? Motivation. A person may have excellent technical knowledge and personal skills, but if motivation is low or inconsistent with the role, context or level of responsibility required, this potential will not emerge. So much so that today knowing how to assess a person's real motivation levers has become one of the most important skills for recruiters.