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Interpersonal Indicators and Accounting Hires

Successful businesses understand the importance of making the right hiring decisions. Companies spend an average of $3,300 per hire just on recruiting the right person. Making the best hiring decision is crucial in establishing and keeping a company successful.

According to a study by Leadership IQ, a stunning 36% of new accounting hires will leave their position or be fired within the first 18 months. Even more surprising is that only 11% of them are unsuccessful because of poor technical skills. That means 25% leave their positions due to interpersonal reasons, many of which could have been detected during the interview process.

According to the study, there are four reasons new hires most often fail:

Listening: They lack the ability to accept feedback and implement it;

Emotional Intelligence: They are unable to manage emotions and understand other people’s emotions;

Motivation: Grit and determination were lacking to succeed in a role;

Temperament: Their attitude and personality did not fit the job and culture.

An unsuccessful accounting hire will take its toll on a company, the hiring manger, and the entire team.

Not only is the replacement cost high in monetary terms, but a failed hire will cause negative effects on the rest of the employees with added work-load, work disruption, and overall diminished work flow and quality. Your corporate culture is an important aspect of the job; failed hires take a toll on work culture and morale.

To lower the chances of costly turnovers, hiring managers need to focus on the non-skill related factors such as interpersonal and motivational drivers.

My colleague, Laurie Knafo, recently wrote a blog highlighting soft skills. (http://www.accountingnow.com/Blog/soft-skills-to-highlight-during-your-next-job-interview-14162) As a hiring manager, these are some of the less obvious traits you should key-in-on during your interviewing process – exactly the factors listed above. An employee with great emotional intelligence, attitude, and work ethic will likely make a better hire than someone technically superior – but lacking in areas needed to be a fit on your team.

As a candidate, be sure to highlight the ways you can shine as a new member of the company – in addition to the technical, educational, or project experience you bring to the job.