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Avoid Costly Hiring Mistakes

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Hire Right the First Time

 

Probably the most important decision that you make as a hiring manager is hiring the right person for the right job. The consequences of your decision are immediate and long-lasting. The right person makes money for your business and the wrong person costs your company, sometimes heavily.

 

We make hires to improve productivity and increase profitability, yet, based on studies, only 16 percent of employees actually make money for their hiring companies. How can you improve the odds that you make a good hire?

 

First, don’t hire the first person you interview right off the bat. It is important to find compare three to four finalists before making a decision. Doing due diligence increases the odds you’ll make a more appropriate hire. Having an appropriate interview process in place can improve your chances of ruling out those who may be less reliable, less motivated, or less productive. You want to avoid hiring the workplace survivor which is someone that just gets by with minimum effort. Someone like that is not worth the money you put out and in time, might cost your company 2 to 3 times your investment, in terms of training and replacements.

 

Here are some thoughts to remember before you extend an offer to a candidate you’re not feeling certain about.

  • Conduct Thorough Interviews: Avoid the temptation to hire the first person you interview. Instead, take the time to compare and evaluate three to four finalists. Performing due diligence significantly improves your chances of selecting the most suitable candidate. Establishing an appropriate interview process helps in identifying individuals who are reliable, motivated, and productive. By avoiding the “workplace survivor” mentality, where someone simply gets by with minimal effort, you can ensure that your investment in hiring pays off in the long run.
  • Consider the Cost of Wrong Hires: Before extending an offer to a candidate, consider the potential costs associated with a wrong hire. Turnover costs can range from $10,000 for an entry-level position to as much as $150,000 for an executive position, for each individual who quits or is terminated. Inept employees drain company resources, leading to a decline in time, energy, satisfaction, and overall productivity. Moreover, hiring the wrong person can expose your company to unnecessary lawsuits, making you liable for their actions. Minimizing these risks becomes crucial for maintaining a healthy work environment.
  • Long-Term Impacts: While not all wrong hiring decisions result in drastic costs, their effects can linger for years and negatively impact your organization and teams. Poor hires act as a slow poison, causing morale issues and hindering overall performance. To avoid these consequences, it is worth considering enlisting the services of a professional search firm. By partnering with a reputable recruitment partner, you gain access to a wider talent pool and expert guidance in making critical hiring decisions. Their expertise can help you avoid costly hiring mistakes and develop a more effective hiring strategy.

 

In today’s competitive landscape, hiring the right talent is essential for business success. By conducting thorough interviews, considering the cost of wrong hires, and prioritizing organizational fit, you can significantly improve your chances of making impactful hiring decisions. Remember, it’s not just about qualifications; attitude, cultural fit, and emotional intelligence matter too. So, invest the time and effort upfront to hire right the first time, and watch your organization thrive.

 

What has been the worst hiring decision you’ve ever made? No names here, but how did that decision impact you or your company?

 

Anjela Mangrum, the founder of Mangrum Career Solutions, is a trusted authority in executive recruitment for various industries, including manufacturing. She specializes in matching top-tier candidates with rewarding opportunities. Connect with her on LinkedIn and join the MCS LinkedIn group for the latest news and trends in recruitment. Let’s work together to build strong and successful teams!