senior client partner
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As the old Danish proverb goes, “Prediction is very difficult, especially about the future.”
Yet, people try. Most believe they will avoid accidents on the road, overestimating their driving abilities. They think they will get through that flurry of emails later in the day, underestimating the number of things that can throw that plan off track. And they make hiring decisions based on subjective impressions, assuming a new hire will drive stellar results in their new role.
Being aware of these biases is part of the battle in overcoming them. The other is relying on objective data. And data, perhaps not surprisingly, are great fortune-tellers.
In its new report, The ROI of Hiring Strong Performers, the Korn Ferry Institute reveals how organizations that use Korn Ferry’s assessments can see a return-on-investment in the triple digits.
“Hiring the right leaders can sometimes feel like a crap shoot, and the risk of making a wrong decision can be significant,” says Stu Crandell, senior client partner and assessment leader for Korn Ferry’s Board & CEO Services practice. “Using a robust, well-designed assessment process can greatly increase your odds for success and lead to greater financial outcomes.”
Indeed, using the firm’s assessment data, KFI researchers found that, in just two short years, a mid-level, high-performing leader can deliver a 289% return on the initial financial investment. A high-performing senior executive, on the other hand, can bring a 278% return, the study found.
What’s more, using Korn Ferry’s assessments to place either a mid-level leader or senior executive can reap significant intangible benefits. According to the report, these include stronger relationships with direct reports and supervisors, teamwork, engagement and organizational commitment, and conflict reduction.
In the end, this has tremendous implications for an organization.