While the occasional bad hire is going to happen to any company, persistently making bad hires can be very costly to an organization. Considering the costs linked with hiring and training a worker, as well as potential unemployment claims, the price of replacing a single worker can range from 30 to 150 percent of the annual salary for the position.
However, the harm caused by bad hires surpasses the financial costs of turnover. Bad hires can adversely impact worker morale, lower overall confidence in a company, and decrease worker efficiency.
If your business is looking to curb its rate of bad hires, you may want to consider reviewing the entire system, paying particular attention to the way you screen and interview applicants. Below are four tips on how you can do just that.
1) Know What You’re Trying to Find
At the outset, you have to ascertain which qualities are most critical to the job you are attempting to fill. When you are operating as a solo act, it can be difficult finding the ideal fit for your team. Make sure you consult with staff members, as they understand the abilities, knowledge, and personality it takes to achieve success within your business.
Also, have people from various levels of your organization meet with interviewees. Your employees will likely provide valuable feedback that can help you help make the best decision.
2) Prioritize Diversity
Sometimes, hiring managers can fall into the trap of hiring the same type of employee. Obviously, this has serious implications from an equal opportunity standpoint, but it’s also bad from a business standpoint. Study after study has shown a connection between a high level of diversity and positive outcomes such as higher productivity.
To access a more diverse candidate pool, make sure you’re looking in a wide range of places, including community organizations and veteran groups.
3) Don’t Over-Rely on the Interview
In an interview, it is easy for a candidate’s appeal or wit to impact your opinion and distract you from what truly is important. It’s very easy to be impressed by someone who has the same sensibilities as you. However, you have to keep your focus on being able to identify any red flags.
Avoid being swayed by deliberately focusing on all the experience, achievements, references, and abilities the applicant possesses, in addition to traits like creativity and leadership. It is very challenging to assess all this in an interview.
4) Take Your Time
The economy is booming, and companies are hiring; this means pressure to get someone in an open position before work piles up. However, there’s a tremendous risk when you rush the hiring process.
To steer clear of this hiring mistake, focus on deliberate steps and stages that applicants have to complete, like a skills test or pilot project.
We Can Increase the Success Rate of Your Hiring Process
At ZDA, we work with our clients to find best fit candidates for their open positions and strive to minimize the risk of a bad hire. Please contact us today to find out how we can make your hiring process even more successful.