The challenge and cost of a hiring mistake is one of the most-discussed, most frustrating, and most misunderstood problems that our businesses can face.
If you do not know what a single hiring mistake is costing you, take the annual salary for the position and multiply by 2.5. This number represents productivity loss, recruiting and hiring cost, training cost, liability, unemployment, and the other 101 hidden costs that we usually try not to think of, or may be aware of, when we lose an employee.
Hiring mistakes often begin with our believing in “hiring truths” only to find that in reality they are “hiring myths!” When we hire someone who does not fit the job, we have already begun an almost inevitable course that will end with failure—and another hiring casualty.
Myth #1: We can hire anyone to do anything.
We believe in the illusion that we can coach, train and motivate anyone to do anything. Unfortunately we don’t live in an ideal world. People come into our companies with their own “version” of how to do something and whether or not they will. Sometimes we can train them in “our” way; many times we can provide surface training. It’s what’s underneath (a.k.a. core behaviors, thinking styles and occupational interests) that can keep them from doing the job as it needs to be done.
Myth #2: I’ve always relied on my gut.
While using your “gut” or “intuition” can provide insight, it’s far from a perfect science. Usually, our gut feelings are based upon past experiences; we’re trying not to hire the same (unsuitable) person we did before, or find someone as great as the person that just left for a better job. People are like ice bergs: You only see the tip, the part they wish to show us. However, we miss the 75% that is covered up that will make or break their success in our business.
Myth #3: We simply hire and fire until we find the “right one.”
In the meantime, the other “right” ones have left! The cost of personnel has gone up, quality and customer relations have declined, and your bottom line has been severely impacted!
Myth #4: Any assessment tool will do.
Why don’t more of us use assessments to improve our hiring (and lower turnover)? Part of the answer lies in lack of education on the topic—not many of us have even attended a single seminar on use of scientific assessment tools. Part lies in reluctance to spend any money on new processes. Part of it, frankly, is the already overwhelming load we place on the people who are doing the hiring—they are untrained.
Fortunately, the science of assessments has produced increasingly useful and valid tools. While no assessment, or even a combination of assessments, guarantees success, the same study showed that use of personality, abilities, interests, and job matching measures can raise your success rate to 75% or better.
© Jeannette L. Seibly and John W. Howard, 2006
Jeannette Seibly, Principal of SeibCo — your partner in developing work and career strategies for selection, results and growth, We improve your bottom line! JLSeibly@comcast.net
John W Howard, Ph.D., owner of Performance Resources, Inc. helps businesses of all sizes increase their profits by reducing their people costs. His clients hire better, fire less, manage better, and keep their top performers. email@example.com