WELLESLEY, Mass., July 22, 2014 /PRNewswire/ -- A bad hire is not just bad for business—it can also be very costly. 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 – that could result in costs upward of $50,000 for replacing a senior executive. Factor in productivity loss and lost opportunities, morale implications, turnover and recruiting costs and the price tag starts to skyrocket.
Fortunately, organizations can prevent the costs associated with poor hiring decisions by recognizing the challenges at different steps of the talent acquisition process.
PI Worldwide, a leader in science-driven insights that help optimize the performance and potential of individuals, teams, and organizations, has compiled the following tips to help managers avoid the most common mistakes that can lead to a bad hire:
- Clearly Define the Requirements of the Role
The first critical step in the hiring process is to define what would make someone successful in the role. Yet, different stakeholders often have varying perspectives on what this means. By using a job analytic, organizations can objectively align all stakeholders on those activities that are most important for success in a given role. Having an agreed upon job target sets the foundation for a successful hiring strategy.
- Write an Accurate Job Description
Hiring managers often make the mistake of focusing more on activities and tactical goals than on detailing all of the Knowledge, Skills, Abilities and Other characteristics (KSAOs) that an employee will need to be successful in the role. A well-rounded job description provides clarity around the needs of the job for both the internal team and external job seekers.
- Define What Makes a Strong Candidate
When analyzing the results of the recruitment effort, managers will in many cases identify several candidates who meet the minimum requirements of the job but will ultimately be a poor fit. To avoid this scenario, consider behavioral tendencies and attitudes in defining what makes a strong candidate and compare applicant profiles against the job target to determine compatibility.
- Incorporate Behavioral Data into the Screening Process
Since the average Talent Manager may receive 100-150 applications per position, the right technology solution can help organizations manage volume in the hiring process. However, with some technologies, organizations run the risk of eliminating good fit candidates while retaining applicants who prove to be a poor fit. Using a quick and practical assessment to measure a candidate's behavioral assets provides additional data points to the decision-making process. This helps ensure hiring managers aren't passing over the best candidates and continuing to interview poor fit candidates.
- Conduct Better Interviews with Data-driven, Behavior-based Questions
When hiring managers lack the training or practice opportunities 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 can help all members of an interviewing team develop structured behavioral interview questions to determine job and culture fit with greater accuracy.
- Align Job Offer with Candidate's Motivating Needs
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.
- Customize a New Hire's Onboarding Plan and Learning Objectives
Once the hiring process has culminated in a great new hire, managers must embark on getting that individual embedded in the culture and productive as quickly as possible. A common misstep is when managers don't continue to leverage the data and insight collected thus far to customize the new employee's onboarding plan and learning objectives. This unnecessarily puts at risk the employee's success potential and job satisfaction.
By following these seven tips, managers can predictably and repeatedly hire the right employees and benefit from an engaged, productive workforce. For more information about data-driven workforce solutions and expert tips from PI Worldwide, please contact:
Davies Murphy Group, Inc.
About PI Worldwide
Trusted advisors to a global client base, PI Worldwide and the 400 experienced consultants at our 45 member firms change the way clients find the right people, develop leaders at all levels, and achieve growth goals. Founded in 1955, PI Worldwide pioneered a new approach, based on the Predictive Index® assessment, for optimizing the performance and potential of individuals, teams and organizations. The company offers a unique combination of behavior and skill assessments based on a proven methodology incorporating data, technology, knowledge, and business expertise. More than 8,000 clients drive dramatically better business results by leveraging our data-driven solutions in 142 countries. Learn more at www.piworldwide.com.
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