High employee turnover and poor hiring decisions go hand-in-hand.
It’s a simple cause and effect scenario.
When you hire the wrong people for the job, you’re bound to encounter obstacles down the line. In fact, 80% of employee turnover can be attributed to poor hiring decisions.
If your firm can nip this problem in the bud, you’ll benefit from higher employee retention, more productive and happier employees, and a plethora of other workplace benefits.
Let’s dig into why poor hiring is so detrimental to a firm and how it costs your business more than just dollars.
The hiring process is expensive. Consider everything that goes into selecting a new candidate for your team:
Not all hiring processes are the same and you may experience more or less expenses when you take on a new team member. Nevertheless, costs add up quickly; when you’re not hiring the right person, it’s essentially money down the drain.
If in the following weeks or months after a new hire you realize you made a poor decision, you have to deal with termination costs, not to mention restarting the hiring process from scratch.
Hiring costs are inevitable; something you take in stride in the anticipation of bringing on a new team member. However, poor hiring can take a hit to your organization beyond the monetary impacts.
Your team takes the biggest impact:
It is a process for your team to adjust and accommodate to a new employee, which can distract from other responsibilities, including client relations.
When a team has to consistently adapt to a new member, only to have them leave shortly thereafter, it can become a frustrating and demoralizing process.
There are a number of reasons why an employer might select the wrong candidate and it’s important to be aware of why you got yourself there in the first place, so you can make sure it doesn’t happen again.
Consider the last time you made a poor hiring decision; does any of this sound familiar?
Hiring doesn’t have to be a stressful, time-consuming process if you manage it well and give it proper consideration.
Don’t rush the process. You want to fill the position and get things back to status quo, but is it really worth it to fill the role with just anybody or an “okay” candidate?
Make your goal to find the right person for the job, even if it takes longer than you’d like.
Look beyond the resume and consider how this new team member will fit in with your company culture. If your essential values and vision are misaligned, it doesn’t matter if they have all the “right” experience and credentials.
Skills can be taught, the right attitude and cultural fit are more important for a successful hire.
Get the people actually doing the job to write the description, or involve those closest to the position.
Aside from hard skills, include soft skills that are important to the role, such as cultural norms.
Don’t make the decision alone. Include a few trusted colleagues to weigh in on the new hire.
Invite other managers or employees who will be working with the new hire to make sure they’ll be able to work well together.
A new hire should want to work for your firm, not just any business. During the interview process endeavor to create a personal connection — hiring should be a mutual decision.
When I began growing my firm, I did all the hiring. My goal with each subsequent hire was to remove myself more and more from the process, in favor of my team taking over.
To achieve this goal I included my employees in the hiring process, so they could understand what was important for our firm and the kind of people we needed to be successful.
Now, I feel completely comfortable with the hiring decisions my team makes because I know they understand our values and mission, and are highly capable of selecting the right candidate.
That’s not to say I have zero input, but I trust my team and am able to focus my energy on other responsibilities without the fear of poor hiring decisions.
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