Hiring is a strategic activity for any organization, and it is pertinent for organizations to hire the right people. Our assessment partners at Accendo share their take on the hiring practice, why organizations make poor hiring choices, and pitfalls to avoid while hiring.
THE TINDER EFFECT IN HIRING
In many ways, selecting the right candidate for your company is much like using a dating app. You comb through a stack of profiles and resumes until you see someone you like, and think can be a good fit; then you pick them, and hope for the best. Unlike a dating app, however, you can’t simply say goodbye and move on to the next candidate with a swipe of a finger. Picking the wrong candidate for a position has a real effect on both parties, and can be complicating for all those involved. Let’s call this the ‘Tinder Effect’ in hiring, and it is something that is often taken for granted when looking at prospects to fill a role.
In fact, the Harvard Business Review has found that as much as 80% of employee turnover is a result of bad hiring decisions1. For starters, this can mean a serious financial hit for a company, as the U.S Labor Department estimates that it can cost an average of one-third of a new hire’s annual salary to replace him or her, with the financial impact rising the further up the organization the turnover occurs.
It can even be higher than that, with the Society for Human Resources Management (SHRM) estimating that the figure could be up to five times a bad hire’s annual salary. What is clear, however, is that hiring poorly can mean a great financial burden to your company’s bottom line.
So why do companies hire badly so frequently?
According to a survey by Robert Half, 36% of 1400 executives surveyed felt that besides performance issues, the major factor leading to bad hires is a bad skills match. The second most common factor is unclear performance objectives.
Another reason could be that recruiters or HR managers often confuse job definition with job criteria. Often, job definitions can be misleading, in that what it takes to do a job may be very different from what was written in the job definition. This is often the case when job definitions are written by people who have not done the jobs they are recruiting for.
Perhaps an often-overlooked factor in hiring poorly is the undervaluing of company culture. In many cases, candidates seem like the perfect fit at every
level of the hiring process, having ticked every box in a recruiter’s list. However, after some time on the job, it becomes clear that their values and cultural outlook is in direct conflict with company culture. This leads to them interfering with workplace goals and operations and leads to alienation and frustration for all concerned. To combat this, it is essential that an open definition of a company’s culture exists in some form, and that specific questions in an interview be tailored to ascertain if a candidate fits within the company’s cultural framework.
So how do you improve your chances of hiring a good candidate?
Be certain of what you want.
Revisit old job descriptions and refresh them to take into account changing times and requirements. Be sure in the skills that you are looking for in a candidate so that they can better complete your team. Be as detailed as possible in your job descriptions to avoid a glut of resumes.
Make a personal connection.
Hiring is more than finding the perfect resume or profile. Often, a simple heartfelt conversation between recruiter and candidate is enough to build rapport and hidden personality traits that can help you find a candidate with the right cultural fit.
Look out for soft skills and intangibles.
Find out how your candidates operate in a collaborative environment, or flip it and see how they react to working alone. Make them go beyond their comfort zones, and you could find the gems hidden beneath the mountain of prospects.
If you find yourself struggling, hire an expert to help.
Published by: Nikita Madhu in Blog