If you are a hiring manager or in human resources, we don’t have to tell you that hiring good employees is one of your biggest challenges. However, we would like to compel you to make some changes in your hiring process that keep you and your company from becoming one of the hiring statistics listed below.
Great Companies Can Make Bad Hiring Decisions
Here are just a few statistics that we would like you to think about:
- 80% of employee turnover is caused by bad hiring decisions. This can be caused by ineffective screening and interview of candidates, lack of understanding regarding the position (both internally and externally), hiring friends instead of qualified candidates, and more.
- 63% of all hiring decisions are made within 5 minutes of the interview. It is also easy to interview a likable candidate and base decisions off of that instead of true qualifications and fit.
- 16% of companies report poor skills match and low performance on the job. This can happen due to poor job profiling or lack of objective evaluation of the candidates skills and abilities.
- 22% of new hires turned out to be unqualified for the job. This occurs for the same reasons mentioned above.
- 1/3 of all job applicants say they have applied for over 30 jobs. Your company is competing with other companies for good candidates.
- 53% of all applicants lie on their resume. This one is shocking to even me!
- According to SHRM, it costs up to 5x the annual salary to replace a bad hire. Just think about what can be done with all of that money!
- 43% of companies report rushing to fill jobs quickly which leads to lower quality hires. Once managers and companies identified a need, they generally want to get the new employee in the door as soon as possible. This generally means process is overlooked and quick, subjective decisions are made. Or we settle….
How to Stop Making Bad Hiring Decisions
We aren’t willing to say that if you make some changes you will NEVER have a bad hire. This is because hiring is part art and science. Plus, we are humans and make mistakes from time to time. However, we do guarantee that if you implement even some of these changes to your hiring process, you will start making better hiring decisions and reduce the number of bad hires your organization makes.
- Create a documented hiring process. This may seem obvious but most organizations do not have this in place. It is hard to know what steps need to be taken if they aren’t documented.
- Share the documented hiring process. Unless your company is growing quickly and adding a lot of staff, hiring managers may only go through the process a few times a year. Give them a tool to walk them through the process.
- Train your managers on interviewing and hiring. Don’t make the assumption that all managers know what questions to ask–or not ask–during an interview. Help them understand how to effectively evaluate candidates against job requirements.
- Create a job profile or job description. You can’t hire the right employees if you don’t know what you need from them and whether or not they are qualified to do the job.
- Utilize pre-employment tests. If 53% of candidates lie on their resumes, you need a different tool to determine if you should even spend your time interviewing an applicant. Pre-employment tests are an affordable screening tool that helps you objectively weed through the candidate pool.
- Expand your search with an outside recruiter. There are two main reasons that you should use an outside recruiter for critical positions:
- Focus/expertise. This is all recruiters do. They search for qualified candidates for companies. Sometimes the right answer is to use an expert.
- Ability to reach passive candidates. As mentioned above, 1/3 of all job applicants are actively looking and applying for a lot of other open positions. However, what about the other 2/3 of potential candidates? They may not be actively looking and applying. At On Target Talent, we consider this to be one of our strengths–finding qualified candidates who aren’t currently looking to make a move…and convincing them to do so!
- Take your time! This is our final tip to you. Don’t rush! Take your time and work through each step of the hiring process. It may feel like you are losing money by waiting but trust us, you will lose a lot more if you hire the wrong employee.