This article is reprinted from PI Worldwide, News and Insights, July 2014.
A bad hire is not just bad for business—it can be very costly as well. International talent management experts estimate the average cost of a poor hiring decision to be equal to 30% or more of that hire’s first year’s probable earnings. For example, replacing a senior executive can reach upwards of $50,000. Factor in productivity loss and lost opportunities, morale implications, turnover and recruiting costs and the price tag starts to swell quickly. Fortunately, organizations can prevent the costs associated with poor hiring decisions by recognizing the challenges at different steps of the talent acquisition process. Here are the sevenmost common mistakes that can lead to a bad hire, and how to avoid them at the outset:
- One Job, Different Definitions. Different stakeholders often have different perspectives on what makes someone successful in the role. Using a job analytic, organizations can objectively align all stakeholders on those activities critical for success.
- Poorly Written Job Description. In addition to noting activities and tactical goals of the job in the description, it’s important to detail all of the Knowledge, Skills, Abilities and Other characteristics (KSAOs) that an employee will need to be successful in the role.
- Attracting the Wrong Behavioral Profile. A candidate that meets the minimum requirements of the job may not necessarily be a strong fit. Consider behavioral tendencies and attitudes in defining what makes a strong candidate and compare applicant profiles against the job target to determine compatibility.
- Screening Challenge. While technology can help organizations manage hiring volume, some systems will eliminate good fit candidates and retain applicants who prove to be a poor fit. Use a quick and practical assessment to measure each candidate’s behavioral assets.
- Unstructured Interviews. When hiring managers lack the training to conduct effective interviews, they often resort to generic interview questions that don’t evaluate the candidate in the areas that matter most. Using assessment data to inform the interviewing process helps all members of an interviewing team develop structured behavioral interview questions to determine job and culture fit with greater accuracy.
- Compelling the Candidate to Accept the Offer: In today’s hypercompetitive market for top talent, the key to getting a candidate to accept a job is presenting an offer that resonates with their innate motivating needs and drives. Organizations that do not align an offer with the behavioral profile of the person risk losing a strong candidate.
- Ineffective Onboarding: Once the hiring process has culminated in a great new hire, managers must embark on getting that individual embedded in the culture and productive quickly. Managers should continue to leverage the data and insight collected thus far to customize the new employee’s socialization and learning.
For more tips and best practices on improving your talent acquisition process, listen to our Webinar: Avoiding the 7 Mistakes that Lead to A Bad Hire and download our Infographic, “ Can You Afford to Make A Bad Hire? “ on the Sidebar.