Yet 95% of organizations admit to hiring ‘bad fits’ each year. Companies in growth mood want to fill positions as quickly as possible and often do not think about the implications of a bad hire. They also underestimate what the true cost is and how many variables can leave a lasting negative impact.
A new research report by Brandon Hall Group uncovers the devastating impact a bad hire can have on organizational growth and performance. So, what options do organizations have? How can they better identify bad hires early in the recruitment process and what strategies should they consider?
Below are a few recommendations organizations should consider to improve the quality of hires and reduce the cost of a bad hire, based on Brandon Hall Group research.
- Take a strategic approach to hiring. Organizations that want to eliminate the cost of a bad hire should standardize the interviewing process and provide hiring managers and recruiters with the right tools to ask questions and evaluate candidates. 60% of organizations that leverage best-practice guidelines for conducting interviews have an optimized recruitment strategy (one that aligns with business objectives), compared to 10% of companies without interview guidelines.
- Strengthen Your Employer Brand. An employer branding strategy should be a priority for any company looking to reduce the cost per hire. Organizations that invest in employer branding are three times more likely to make a quality hire. When an employer brand can accurately reflect the company culture, organizations will have an easier time attracting the right talent.
- Consider the Candidate Experience. Organizations that invest in a strong candidate experience improve their quality of hires by 70%. In many industries such as retail and professional services, candidates are also customers. Organizations should put the same rigor into the candidate experience that goes into the customer experience to ensure these individuals will perform, stay motivated, and want to stay with the organization.
- Assess Candidates Often. Only 5% of organizations evaluate candidates during the sourcing process. The key to successfully mitigating the risk of a bad hire is to evaluate candidates often in the recruitment process, starting with the sourcing process. If organizations are able to identify potential problems with a candidate early on, they can reduce the costs associated with screening, assessing, and interviewing that individual.
- Look Beyond Hard Skills. Organizations often look only at the skills and competencies posted on a job description. In doing so, they fail to learn whether the candidate demonstrates behaviors consistent with the values and culture of the organization, has potential for leadership – or behaviors or values that might limit advancement.