Bad hires are causing problems for medium sized businesses
Small to medium sized businesses across the UK are experiencing a loss of growth as a result of failed senior appointments, according to a study from executive search and interim management firm, Intramezzo.
The report, titled A Board Fit for Purpose, found that 90 percent of Venture Capital (VC) and Corporate Venture Capital (CVC) fund managers have experienced an unsuccessful executive hire, which they cited as costing anywhere between 10 percent and 60 percent of lost annual growth.
Forecasts
In addition, 80 percent of those surveyed have always or frequently failed to achieve expected business plan forecasts because of failed appointments, whilst 73 percent also reported missing commercial milestones. Lesser cited, but no less severe, ramifications include failure to attract further funding staff leaving and delayed exit plans.
The report surveyed 100 CVC and VC fund managers from around the world and also found that while organisations do their best to avoid failed appointments, 84 percent of investors say finding people with entrepreneurial experience, mind-set, and cultural fit is the biggest issue when searching for talent. Over half of respondents felt that distraction at management level caused by the upheaval associated with failed appointment has frequently led to lost opportunities.
Robert joined the HRreview editorial team in October 2015. After graduating from the University of Salford in 2009 with a BA in Politics, Robert has spent several years working in print and online journalism in Manchester and London. In the past he has been part of editorial teams at Flux Magazine, Mondo*Arc Magazine and The Marine Professional.
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