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How Financial Accounting Screws Up HR

Keith Negley

Summary.   

Many common practices for managing employees are hard to explain. Why do companies obsess over cost per hire but spend so little time trying to see if they make good hires? Why do they provide so little training when we know it improves performance and many candidates say they’d take a pay cut to get it? Why do firms delay filling vacancies and let work go undone? Why do they spend so much money leasing personnel from vendors rather than hiring their own?

A version of this article appeared in the January–February 2023 issue of Harvard Business Review.

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