Selection: Save Money and Succeed with Good Hiring Practices
"There is something that is much more scarce,something
rarer than ability. It is the ability to recognize ability"
- Robert Half
One of the greatest challenges hiring managers have is finding
the right people for the right jobs. There are so many pitfalls
and legal obstacles to overcome. Even more complicated than
the legal considerations are the candidates themselves who possess
strengths, weaknesses and personality traits that can be extremely
difficult to assess in just a few visits.
According to the U.S. Department of Labor statistics, the average
annual voluntary turnover rate is almost 22% and the involuntary
turnover rate is 19% for a total turnover rate of 41% for American
businesses. That equates to a cost of $100 billion per year
to American business for hiring mistakes. Too add salt to the
wound, it is often the best employees who leave voluntarily,
leaving the marginal performers, who seem to want to stay forever.
Reports for the cost of turnover range from 25% to 400% of a
person's annual salary, depending on the position. Turnover
is incredibly expensive and impacts the financial health of
an organization. While some turnover is inevitable, selecting
the right people for the right positions can reduce turnover
and greatly improve a company's bottom line.
Turnover is inevitable, and sometimes even desirable. For example,
someone may be the perfect hire for a position but due to changing
environments, the position has changed so much that that person
is no longer "perfect." Others may outgrow their position
and there is nowhere else for them to go within the company.
Other times, it makes sense to bring in new blood to generate
new ideas, approaches, abilities and attitudes to keep the organization
from becoming stagnant.
Most hiring managers will agree that they would like to choose
the right person for the right position the first time. Whether
your current selection process consists of hiring the first
body through the door or includes sophisticated testing, assessments
and behavioral based interviewing, you can take steps to minimize
risk and increase your likelihood of making the right choice.
When interviewing candidates it is important to determine three
things: Are they capable of doing the job? Do they have the
motivation to do the job? Will they fit in with the way things
are done in your company?
To determine the answers, you must be clear about the position
you want to fill. You need to outline the skills, knowledge
and attitudes critical to success in the position. Think about
how the demands of the job might change over time as the company
evolves and pursues long-term goals. Consider what attributes
indicate someone is likely to work hard and perform consistently
well. Try to learn what motivates a candidate and whether that
motivation is suited to the job description.
Regardless of the position you need to fill, the general values
and practices of your company are important to keep in mind.
For example, a highly team-oriented culture might not be ideal
for a lone-ranger type, and a focus on customer service could
frustrate candidates who are proud of their expertise and accustomed
to having the last word.
The right selection processes can help companies minimize hiring
costs, improve productivity, reduce turnover and save time and
money. Strategic Enhancement Group can help you create a dependable
selection process including:
-
Clear definitions of the knowledge, skills and attitudes
required for success, now and in the future
-
Interviewing protocols that help you get job relevant information
about candidates' experience, education and skills
-
Evaluation criteria to match candidates to the job requirements
and rather than comparing applicants to one another
-
A profile to determine a person's natural motivated abilities
-
Assessment tools to measure a candidate's skills
-
Evaluation tools to determine values and measure suitability
for your work environment
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