Why Are They Firing? Bad Hiring

Poor Screening of Candidates to Blame: Personal issues and better pay are the top two reasons why employees leave an organization—at 31 percent and 25 percent, respectively. Yet nearly as many employees (24 percent) are discharged for issues relating to performance, according to a survey of small businesses by the National Association of Professional Employer Organizations. The Alexandria, Virginia-based trade group’s finding suggests “companies aren’t screening candidates as effectively as possible.” About 70 percent of companies say job candidates omit relevant background information “occasionally or frequently.”

Another alarm bell: Nearly 12 percent of employees said they left to avoid “personality clashes” with co-workers and supervisors.

Small businesses also seem to be sending mixed signals on the health of the U.S. economy. Nearly half say they plan to neither fire nor hire during the fourth quarter, while 47 percent expect to add employees.