As of today we have published a few posts on executive assimilation. Last week, for example, we wrote about the top challenge of executive assimilation. A few months ago, we published a case study around how a Fortune 200 executive used 9Lenses software to accelerate her assimilation. Our former CTO, Ed Cohen, has also shared his thoughts about how the onboarding conundrum can be solved. But what we haven’t done so far is really make the case for why Executive Assimilation is an essential process that the HR departments need to address.
HR departments today are assuming a more strategic role in their organizations, becoming more data-driven and using people analytics to make key strategic decisions. As a result, the conventional, highly manual onboarding and orientation processes have become inadequate.
We compiled a list of statistics that point towards the fact that HR practices associated with executive onboarding need to change.
Here are some statistics from an SHRM report on how to maximize success while onboarding new employees:
- Every year more than 25% of the working population experiences career transitions.
- In Fortune 500 companies alone, about 500,000 managers take on new roles each year, and overall, managers begin new jobs every two to four years. Unfortunately, in the midst of all these transitions:
– 50% of all senior outside hires fail within 18 months in a new position.
– 50% of all hourly workers leave new jobs within the first 120 days.
Here are some statistics we found in two highly rated books on executive assimilation :
- The cost of failed executive-level hires is $2.7 million in direct and indirect costs. (The First 90 Days:Critical Success Strategies for New Leaders at All Levels)
- More than 70% of newly hired senior executives leave their positions within the first two years. (Assimilating New Leaders:The Key to Executive Retention)
From our research, we have also found that the most conservative figures estimate that $10,000 is the cost incurred by a company for every failed onboarding.
The aforementioned statistics, as well as conversations we have had with our own customers, have led us to conclude that it is now time for a more robust process than traditional onboarding to bring executives into their new roles, and an automated Executive Assimilation program is a great alternative. Getting executive assimilation right is crucial both for the health of the organization and the success of the newly appointed executive. Since executive assimilation programs comprise quite a few steps, we put together our Essential Executive Assimilation Checklist for HR leaders. See if you tick these 10 check boxes.