Can you afford a mis-hire?

Dear Professional,

Peter Drucker said that "2/3rds of all hiring decisions result in a mis-hire/mistake". Considering that the average cost of a mis-hire is 4 to 6 times the employee's annual compensation (for sales positions it's 15 times annual compensation), hiring managers can't afford to make too many mistakes. Studies also show that most hiring managers make the decision to hire a candidate within the first 30 to 60 seconds and spend the remainder of the interview "talking themselves into that candidate". That may be good news for job seekers but it's a costly mistake for employers.

The recently debunked myth surrounding hiring is very insightful; "behavior is a better predictor of success than past experience". Determining a candidate's behavior becomes central to making a sound hiring decision. Hiring managers need to engage in structured behavioral assessments and comprehensive interviewing to discover who the candidate really is, determine if the candidate is right for the position, find out if the candidate will fit into the company's culture, and determine if the candidate possesses the right competencies and values to succeed within the company. The question is begged, "what does right look like?" A company can't possible know this unless it has benchmarked it's internal A-players in their respective roles with specific performance indicators (KPIs).

Retention starts with selection! The cost of a mis-hire involves much more than just the salary expense and the advertisement. Mis-hire costs include, the cost of training, HR time, other interviewers time, ramp up time (think sales position), potential prospects/customers lost, legal fees, etc. When you calculate these costs at six months and realize you've hired the wrong person-your job may be in jeapordy.

With the coming storm of turnover, job vacancies and the potential loss of key contributors (when the economy improves), it's time to consider the right process and the right partner in audiology talent acquisition.

Best Regards,

Tom
COO, Bridgeline Associates, Inc.