Poor hiring decisions are costly mistakes that can range from 150% to 300% of an employee’s base salary. Financial losses include expenses associated with hiring and training, low employee morale and decreased productivity. Plus, poor hiring choices frequently lead to damaged client relationships, loss of new business and business in general, unemployment and more. The bottom line is that bad hiring decisions can make or break a business.
Businesses that ignore the hiring process in the interest of expediting it are far more susceptible to missing important clues that could prevent a poor hiring decision. For example, studies on the behaviors of job applicants report that more than 65% of all candidates do not prepare their own résumés. Even more unsettling for prospective employers is that more than 45% misrepresent their credentials with one or more “tall tales.” From reporting academic degrees never achieved and embellishing roles to listing completely fictitious positions, many of today’s job seekers will do whatever they can to appear qualified.
A third and very common trap is to hire on the basis of job descriptions. These typically list a subjective interpretation of required skills and experience. By highlighting only hard skills, they leave out the most critical elements such as key performance objectives, behaviors, values, emotional intelligence, character traits and soft competencies — the defining criteria that lead to effective performance.
With the war on talent in full force, there is tremendous pressure on hiring managers to keep their organizations fully staffed and productive. But how does one meet these demands without falling into hiring traps? After more than two decades as a recruiter, staffing agency owner, and leader of the KeenAlignment strategic hiring and retention initiative, I’ve developed an arsenal of practical tips and “insider” tools that empower business owners and HR executives alike with the ability to make informed decisions about their most important resource — their people. Contact us today to see how we can help you hire strategically.