Reasons Companies Hire the Wrong Person

hire, interview

No business owner wants to hire the wrong person for the job. Deciding on a recruiting method, whether it be internal recruiting or seeking an external search firm, can be daunting with the amount of choices available.  In the end, hiring the wrong person can cost a company thousands of dollars in wages and training time.

“80% of employee turnover is due to bad hiring decisions.” – The Harvard Business Review

What is the general culprit for poor hiring decisions? Recent studies have found, besides poor job performance, the culprit in poor hiring lies in a poor skills match- or a disparity in the candidates’ skills compared to the job description.  The job description is a critical document that needs to formally detail responsibilities, skills, and competencies a hiring manager seeks.

This document alone can make-or-break the entire recruitment process.

It clarifies what a company needs in an employee, and candidates rely on it to ensure their skills match those sought by the company. According to a report by the Allegis Group, huge gaps exist between the hiring managers and candidates in this stage of the recruitment process. 50% of employers are much more likely to think their job descriptions are always accurate whereas 35% of candidates find this information to be accurate. This is a huge gap, and often makes the risk of hiring the wrong people more likely.

So, what can you do as an employer to hire the right people? Here are a few tips:

  1. Be Precise- Define exactly what you want in the job description.
  2. Focus on Skills– Focus on whether a candidate has done the job before taking in other factors. It’s not a rarity to see candidates job-hop in the workforce these days.
  3. Compare Core Values- Are the candidate’s core values in line with the company’s core values?

Lastly, utilize all resources at your disposal.

A study from the University of Michigan on predictor of job performance found that the typical interview process increased the likelihood of choosing the best candidate by less than 2%. But having a structured interview process with an assessment or help from external firm ensured a successful hire.

Rather than checking boxes during the interview process, successful organizations choose candidates based on their culture fit and ability to help the company achieve near and long-term goals. As experts at attracting and qualifying talent, we can help you design an interview process to establish better hiring practices that results in long term success.

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