Remember all those employees you grudgingly laid off due to the economic downturn? Now it’s time to hire back some of the crucial skill and knowledge that walked out your door.
It’s likely that your next hires will be new people. Which is okay, right? You knew how to hire the folks who left and you can do the same for new people. And there must be lots of laid-off talent out there to choose from. In fact, hiring in 2011 and beyond should be easy, shouldn’t it?
Not really. Unless you understand the true costs of hiring the wrong person — and how to avoid doing it — your next and future hires could be financially disastrous. Which is why we recommend this white paper from Advantage Thought Leader HR Chally, “The 9 Most Common Hiring Mistakes and How to Avoid Them.”
It’s astonishing how much turnover impacts your bottom line. In this article, HR Chally shows why the process of hiring even a single person packs a big financial wallop once you add up the direct (e.g., locating, interviewing, selecting, relocating, and training) and indirect (e.g., lost revenue, consulting fees, and time spent) costs. Studies show that replacing an employee can cost 2 to 3 times the employee’s annual salary. You might even end up paying a greater salary to someone with fewer skills.
Especially in this tight-margin economy, nobody can afford to make hiring mistakes. But very often, the hiring practices we assumed were right are exactly wrong. For example:
- Mistake #1 – Relying only on interviews to evaluate a candidate
- Mistake #4 – Evaluating “personality” instead of job skills
- Mistake #7 – Not researching why people have failed in a job.
Your real hiring challenge is being able to place the right person in the right place doing the right thing. So after you understand the mistakes to avoid, consider an approach that should be part of every company’s process for selecting, hiring, and placing talent: HR Chally’s statistically validated tests that predict the job skills most critical to success.
If talent management is high priority on your 2011 To Do list – and it should be – these are tools we highly recommend.