Making the right hire is no easy task. The wrong hire can cause turnover and the harm it causes is something every HR manager or business owner should be concerned with.
Costs associated with replacing an employee include recruiting, training, lost productivity, and new hire expenses, which can total up to 150 percent of the employee’s total annual salary according to author Bill Bliss. And while there are several incentives or programs a company can offer employees to encourage employee commitment, turnover can often be traced to the hiring process. In fact, research from the Harvard Business Review shows 80 percent of turnover happens because of a mistake made during this process. Here are a few ways you can feel confident you’ve done everything you can to make sure your next hire won’t be walking out the door in six months.
There may be several qualified candidates for any one job, but take into consideration the experience each person has that is specific to your business or industry. There may not be any candidates who have the specific industry knowledge you’re looking for, but don’t discount experience in the same daily tasks that the position requires. And if the top candidates for the job have several years of experience in your business’ industry, but lack an understanding of the specific job you’re hiring for, keep them in consideration. In an online survey on RefreshLeadership.com, a blog for today’s business leaders, 65 percent of respondents believe qualified experience was the most important part of the employee selection process.
When bringing on a new employee, it’s important to make sure that person fits your company’s culture before they ever become full time. Recognize what your business’ culture is and then identify the top candidates that line up with that culture and vision. If your company holds a more professional business attitude, from meetings to dress style, address that in the hiring process through interview questions. When businesses are open and honest about the culture and attitude they expect of their employees, they are more likely to attract the right talent.
Train to Hire Better
Being properly trained and prepared to hire the top talent your company needs is an important part of hiring right. Researching candidates, recruiting skills, an understanding of the hiring climate and knowledge of the laws associated with interviewing are all essential skills to have for someone in a hiring position.
Reckless hiring is one of the top threats to a successful company in today’s business climate. Don’t let the high costs of turnover and the dangers that come with hiring the wrong employee affect your business.