Hiring mistakes can make or break a company. Hiring for a critical position or hiring with limited resources can put even a strong company in peril. A hiring mistake can undo the momentum gained from landing several new customers and quickly eradicate hard-earned profit margins. A hiring mistake can turn trade secrets into public knowledge and jeopardize the core competitive advantage of a business.
Consider the heavy financial cost of a bad hire. A research study conducted by Right Management reports that the cost of a bad hire can range from one to five times a new hire’s annual salary. Costs for bad hires can vary tremendously depending on the position in question and the costs incurred such as using a recruiter. Furthermore, the more senior the position, the longer it usually takes to assess whether or not the hire is effective in their work. Having a leader leave can impact harder to measure variables like employee morale and productivity related to the lack of fit.
Not only is hiring a risky business proposition, the systems and solutions in place to aid in the hiring process have limitations and flaws.
If you want the right people, you must have at the core of your approach the following guiding principle: past behavior speaks volumes about future behavior. Yes, people can change; however, change rarely occurs unless some major crisis or demand for change comes about due to external circumstances, such as being fired, a major illness or accident. A lot of people decide to get physically fit for example, after they have been confronted with a major health challenge like hypertension or diabetes. Unfortunately, only a portion of those keep up with their new health regimen.
That’s why you must find a way to ferret out information about the candidates’ past successes and failures. Then you can judge how these past events and behaviors may influence success in the opportunity at hand. Gathering focused information to paint a realistic picture of the candidates’ strengths and weaknesses is essential. Corroborating your findings through interviews with references and other assessments you might use will greatly improve your odds that the chosen candidate will be a right fit for your organization.
As behavioral interviewing experts agree, “the best predictor of future behavior is past behavior.” Key Associates, Inc. together with VectorLearning has produced on-line learning programs on How to Hire the Right Sales Talent and on How to Hire the Right Customer Service Talent. To order either program, please click here.