Recruitment and hiring are expensive line items for many businesses. The cost of a bad hire (or several) is even more of a hit to your bottom line. It might not seem like such a costly mistake at first, but truly, reducing turnover and retaining talent is one of the most profitable actions a company can take. Even the most experienced hiring managers can sometimes onboard someone who they regret hiring. Whether a bad hire is someone who is not as experienced or qualified as they led a company to believe, or someone who simply is not able to meet the needs of the job.
Most companies will struggle to put a number on the actual expense of a bad hire, and of course it varies from company to company. But it’s safe to say that a bad hire can negatively impact a company in a variety of ways, including sunk training investments, project revenue and productivity, overall compensation, recruiting fees, and even separation bonuses. But that’s the risk of doing business, right? Wrong.
There are several things you can do as a true leader in your organization to reduce the risk and off-set the cost of a bad hire.
1) Take a Closer Look At Your Hiring Process
Firstly, it’s important to evaluate your recruitment and onboarding strategy. Strategy is the key word here. You need to think through the hiring process from the perspective of reducing your risk of a bad hire. Organizations can take steps to avoid hiring problems in the interview stage by having a consistent interview strategy, following a set list of questions, and really getting to know a candidate through several layers of interviewers (such as a call with a recruiter, in person meetings with a supervisor, a quick chat with the director, and so on). Having multiple people evaluate the fit and qualifications of a candidate will help to weed out the bad seeds before they become problematic.
2) Hiring Proactively and Strategically
Another common source of bad hiring choices is having making decisions under pressure, such as project timelines or increased workload. Hiring from a strategic, long-term mind set can help your company avoid costly errors in staffing choices. Thinking strategically to evaluate your current and future hiring needs will help you to avoid reactive recruiting. Think about hiring in terms of your long-term needs. Focus on retention as well as recruitment to ensure that the staff you do bring on board are able to invest in your company for an extended period of time. Evaluate what experience and qualifications are actually needed to succeed within the listed job opportunity and engage with recruiters and staffing firms to help you find the type of quality talent that will meet your needs now and in the future.
3) Offload Your Risk by Working with a Staffing Partner
Possibly the best thing you can do to remove luck from the hiring equation is partnering with a hiring expert who knows what to look for in a candidate, how to best bring them onboard and provide them with the support and information a new hire needs to get up to speed quickly. That investment costs companies in a big way, but by bringing in someone who has the expertise to find and recruit the right people for the job, you’re on your way to more successful hires and more peace of mind.
Are you looking for a strategic staffing partner?
If you’re looking for a partner in your staffing strategy for the new year, connect with the team of expert recruiters at US PRO today.