Bad Hires Are a Lot More Expensive Than You Think

Hiring is expensive, but hiring the wrong person costs a whole lot more. It's important to note that there's a ripple effect with bad hires. Disengagement is contagious — poor performers lower the bar for other workers on their teams, and their bad habits spread throughout the organization.

So even if you're only planning to add one person to the payroll this year, you want to tighten your hiring processes to ensure those expensive missteps aren't happening. Here's help.

Check out the list of reasons these managers felt the wrong person got the job:

* While the candidate didn't have all the needed skills, though they could learn quickly (35%)

* The candidate lied about his/her qualifications (33%)

* They took a chance on a nice person (32%)

* They felt pressured to fill the role quickly (30%)

* They had a hard time finding qualified candidates (29%)

* They focused on skills and rather than attitude (29%)

* They ignored some of the warning signs (25%)

* They lacked adequate tools to find the right person (10%)

* They didn't do a complete background check (10%), and

* They failed to work close enough with HR (7%).

You can probably spot some patterns in your own workplace that can be corrected.

Bad hires seem to boil down to issues on three main fronts:

1) They Don't Do Their Due Diligence

Resume lies, incomplete background checks, underutilization of HR – all of these shortcuts can saddle you with a bum hire.

Not only background checks but reference checks can help spot any inconsistencies or downright lies. Make sure your company obtains permission from the job candidate with a stand-alone release form for a background check.

2) Making Too Many Assumptions

You know the old expression about when you assume . . .

Assuming someone can pick up skills on the job or that if they're skills-proficient that their attitude doesn't matter can quickly come back to bite you.

Hiring managers need to look at both hard and soft skills – as well your corporate culture – when evaluating candidates.

3) Lacking Resources

Whether it's the time or the tools, hiring managers who feel ill-equipped to make the right call often make the wrong one.

Spending a few more days to conduct an additional interview or the cost of a background check pales in comparison to how much you stand to lose if the wrong person gets the job.

How to Avoid Bad Hires?

So, what can companies do to avoid the bad hires? It all starts with smart recruitment. Here are some tips for employers looking to stay competitive while recruiting in a hot job market.

Recruit for Skill, Not Experience

While some positions may require certain technical skills or certifications, employers can improve résumé flow and connect with higher-quality candidates by thinking more expansively about hiring.

Transferable skills like leadership, communication, resilience, and problem-solving are often far better predictors for future success than work experience. Recruit for competency, rather than pedigree or even degree.

Also, rethink the way technologies like applicant tracking systems are used. They can give preference and higher visibility to certain candidates with ultra-specific skill and experience requirements.

Standardize the Interview Process

According to Brandon Hall, 69% of companies identify their interview process as the most important factor in quality of hire. Companies that lack a standard process are five times more likely to make a bad hire than firms with a standard process.

Clarify what should be covered at each stage of the process: screening interviews, first interviews, second interviews, peer interviews, and final interviews. Providing interviewers with a checklist of questions helps improve consistency and outcomes. Unless you're asking candidates the same questions, how can you properly compare them?

Cut Bait on Bad Hires

When mistakes begin to surface, find another position in the organization that is a better fit for the individual, or cut ties altogether.

Whatever the solution, act fast. It's human nature to delay, defer, and rationalize second chances. Identify hiring mistakes and correct them before they begin to negatively impact the entire organization.

Importantly, don't punish good employees for bad hires. It's often your top performers who end up overworked and burned out from picking up the bad hire's slack, contributing to unwanted turnover.

Marshal Resources and Get Help

Prioritize recruitment efforts. From employer branding to developing an effective interview process to crafting the right onboarding, a lot goes into recruiting.

But it's worth the effort. Your company's performance is directly correlated to the talent and productivity of your employees, as well as your company culture and morale.

Last Word

The current hiring climate is extremely challenging for all industries and companies. But with a little guidance, support and foresight, employers can reduce the risk of bad hires. Why not try to partner with a third-party provider or intermediary that provides the recruiting services, like some staffing companies are beginning to do. Contact us today!