According to Gallup, companies fail to select the right candidate for managerial roles 82% of the time.
This high rate is largely due to poor selection processes that don’t adequately assess leadership potential or
people management skills. A study published in the Harvard Business Review found that 80% of employee
turnover can be attributed to bad hiring decisions.

Mis-hired managers are particularly costly because they influence team performance, engagement, and
retention. A managerial mis-hire can cost a company up to 2.5 times the employee’s salary, or even more
when factoring in lost productivity, disengagement, and turnover. For individual contributors, the cost is
usually estimated at 30% to 150% of the annual salary, depending on the complexity of the role.

For the past twenty-two years the Center for Executive Performance has specialized in delivering highly
accurate pre-employment assessments for C-Suite candidates. Many of our clients have requested an
assessment tool designed for their managers, and individual contributor candidates.