When companies welcome a new hire, they hope to see them grow, contribute and stay. Yet studies show that 46% of all new hires become “failures” within the first 18 months. This means teams lose valuable time on training and onboarding, while productivity drops and costs rise. Because this challenge affects every level, from hourly roles to executive positions, understanding why a new employee leaves too soon becomes essential.
Why New Hire “Failures” Happen
Most reasons for a new hire to struggle, whether hired externally or promoted internally, come from avoidable issues. Fortunately, hiring managers can reduce the risks when they plan ahead and strengthen their recruitment process. In this article, our recruitment experts share the guidance they give companies hiring in the Netherlands. Keep reading to discover the top four causes for new hire “failures” and how strong hiring practices help prevent them.
The candidate doesn’t fit your corporate culture
Many organisations overlook corporate culture when they focus only on technical skills. Yet cultural fit shapes teamwork, communication and long-term engagement. Because CVs and short interviews reveal only part of a person’s character, hiring managers sometimes struggle to predict how well a new hire will blend into the team. Research by Deloitte also shows how serious this is, as 94% of executives believe a clear corporate culture supports business success.
In smaller offices, culture becomes even more visible. Therefore, one “mismatched” new employee can lower morale and affect how colleagues collaborate. Our experts encourage employers to reflect on their culture before starting the hiring process. Ask yourself: Is your structure flat or hierarchical? How do team members communicate? And what helps them build trust? With more clarity, you choose people who strengthen your company rather than clash with it.
Employer and candidate expectations are misaligned
Misaligned expectations often create problems for both sides. When companies don’t communicate clearly, they risk setting up a new employee for confusion or disappointment. Poor alignment damages engagement and contributes to almost half of early exits. This issue is so common that it has a name: Expectation Alignment Dysfunction (EAD).
Expectations form the moment someone reads your job ad. They develop again during interviews, onboarding and the trial period. Because of this, our experts advise employers to prepare detailed job descriptions that focus on real responsibilities rather than appealing buzzwords. It also helps to gather input from direct managers and any departments the new employee will support. During the process, continue to repeat the role’s purpose and goals, especially when candidates join several hiring processes at the same time.
Hiring process is underdeveloped
Hiring looks easy, especially when digital platforms make it simple to collect hundreds of CVs. However, a basic process often leads to the wrong new hire. Underdeveloped hiring practices are one of the most common causes of failure, especially for growing companies where each decision matters. Without structure, managers struggle to assess culture fit or expectation alignment, which increases the chance of a mismatch.
When internal teams lack time or resources, a strong recruitment partner can support part of the process. This allows your team to focus on meaningful evaluation rather than sorting through endless applications.
Employee is a poor performer
Poor performance remains one of the main reasons a new hire leaves or doesn’t receive a contract extension in the Netherlands. Even with a careful process, you sometimes only see how someone performs after they start. Still, our recruiters often find that “poor performance” relates to personality or expectations rather than pure skill. For example, frequent absenteeism or insubordination often signals deeper behaviour issues that could have appeared earlier with a stronger process.
There is no perfect method to avoid poor performers entirely. However, a structured sourcing and interview approach reduces this risk and offers a more accurate picture of each candidate.
Make the most out of your hiring process
If you want to find the right new hire, you need a process that supports quality and clarity at every stage. The good news is that you don’t need to manage everything alone. Contact Octagon Professionals today and discover how our team can help you attract, select and retain your ideal new hire.
