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Posted 05/05/2014

Cost of a Bad Hire – Tips to Avoid

The Business Journal cited a Society of Human Resources Management (SHRM) study that found a cost of a bad hire can cost up to five times the bad hire’s annual salary.  Costs can include:
  • Recruitment and hiring costs
  • Human Resources time
  • Hiring Management/Team time
  • Orientation and training costs
  • Learning curve productivity loss
  • Work group/team productivity loss
Add to that the cost of going through the hiring process again, and organizations - big and small - can quickly see the value of a solid, proven hiring process. MPS Technical provided tips on creating good hiring processes in a March blog post. Below are key starting points recommended:
  • First, know your job requirements and ensure your selection team is on the same page. Also, have a good understanding of the qualities besides knowledge-skills-abilities (KSAs) that are needed to perform well in your organization.
  • Utilize good selection practices throughout your hiring process to avoid legal pitfalls. Examples, identify relevant selection criteria for screening, develop behaviorally-based interview questions and treat all applicants consistently.
  • Make sure everyone on the selection team understands what to look for on an applicant’s resume and identify any areas that need more explanation for the interview.
  • Plan and conduct your employment interview carefully. Ask about qualifications, experience and the applicant’s expectations – dig for quantitative results. Describe the job requirements, company culture and compensation and benefits. Also, listen and evaluate the applicant’s “ability-to-learn”. Consider including members or leaders from the team the applicant would work with in the hiring process.
  • Consider using validated assessment tools, if applicable. These tools can provide you with additional confidence that you are hiring a qualified, capable worker.
  • Finally, do your homework. Check references, driving record (if applicable) as well as background checks. Be thorough.
Sit down today and take a look at your hiring process. What are your strengths and where are their opportunities to improve? [caption id="attachment_574" align="aligncenter" width="150"]Hiring Process Source: TLNT.com[/caption]