I recently attended an HR Leadership Forum meeting in Arlington, VA on Friday October 5th where Dr. Craig Simpson, with ORTalent, Inc., spoke on “Unlocking the Hidden Psychological Drivers of Leadership Performance.” Dr. Simpson provided some interesting statistics showing that in the first 18 months 30% of internally promoted executives and 50% of externally hired executives fail in their role. Simpson stated that the average cost of this executive turnover is estimated to be approximately $500,000. We know that turnover in general is costly to organizations. So, the question is “why do they fail”?
We’ve been hearing a lot from our clients lately about leadership succession planning and transition at their firms. Although many firms chose to reduce or even eliminate their investment in leadership development programs as a result of the recession, we’ve noted that many firms have come to appreciate the value of that investment, and have therefore given it higher priority.
Let’s face it: the majority of firm leaders today represent the Baby Boomer generation, and for many of us, retirement looms on the horizon. Who will replace us to lead our firms into the future, and what should we be doing in order to ensure that they are prepared to lead?
With any number of books and articles available on the topic of the Millenials, or Generation Y, as the youngest generation of workers is known, as well as coverage by such highly visible institutions as the Society for Human Resources Management and television’s 60 Minutes, employers have a wealth of resources available to them. However, given the frequency with which we hear about this topic from our engineering and architecture firm clients, HR Advisors Group decided to query young design professionals directly about what motivates them in their careers. Therefore, we launched Future Leaders Focus, a survey of nearly 1,000 young engineering and architectural consulting professionals across the U.S.
Has your organization grown or contracted in recent months? Have you entered a new market or won a new project that will significantly change your strategic focus? As the economy rebounds, are you concerned about recruitment and retention of key staff? If so, it’s time to get your HR “house” in order. An HR Audit is the place to begin.