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The Challenge of Managers to Hire the Right People

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The Challenge of Managers to Hire the Right People A manager has one of the most demanding roles in the business world. In today’s business environment, he or she is responsible for a wide variety of tasks while facing many challenges. One of these is hiring the right people for an organization. The hiring process is difficult because many people apply for jobs, but very few are actually a good fit for the company. In addition, the replacement of employees is costly. However, exceptional managers are able to create a fairly consistent selection process while applying theories of management in order to face the challenge of hiring the right person. Hiring the right people has become a major challenge for most managers in today’s business world. Eric P. Bloom states, “Everyone employed by the company…is an expense to the company.” (2) Therefore, part of that expense is the cost it takes to replace a new employee through the hiring process, otherwise known as employee turnover. There are countless sources that show varying statistics on exactly how much this costs, mostly depending on the role and salary of an employee. For example, a Center for American Progress (CAP) study showed average replacement costs for a mid-range employee (annual earnings between thirty and fifty thousand dollars) was twenty percent of his or her salary. The study also suggested the cost to replace an executive, such as the CEO of a company, could be up to as much as two hundred and thirteen percent of his or her salary. It is difficult to pinpoint an exact cost because many factors are either intangible or go untracked in an organization. Some of these include the costs of advertising for an open position, lost time and productivity during the training process, and the impact on the culture of the workplace when one employee leaves and another is brought in. (6) In his article, Eric

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