Posts Tagged ‘bad hires’

Avoid Paying for Bad Hires in 2014

January 23rd, 2014

paying for bad hiresThere’s an old adage in carpentry about how you will benefit if you “measure twice, cut once,” which speaks volumes about the importance of taking your time to do the job right the first time. It also applies to the decisions that you make when recruiting and hiring applicants for jobs at your organization.

Hiring managers need to take their time as they evaluate recruits to avoid paying for bad hires in 2014, as so many companies have done in the past year. Bad hiring decisions can amount to as much as 30 percent of a recruit’s earnings during the first year, notes the U.S. Department of Labor.

What’s more, besides becoming a drag on the company’s profits, a bad hire can reduce your team’s morale and productivity, as fellow employees have to take time out of their day to train a fellow worker who really has no business being at the company.

The cost of bad hires can quickly add up, according to a recent interview with Tony Hsieh, the CEO of Zappos at Business Insider. Bad hires amount to the biggest category of mistakes, costing Zappos in excess of $100 million, said Hsieh.

The Zappos method for avoiding bad hires now includes using two sets of interviews, Hsieh said. The first set is conducted by the hiring manager, to determine if the potential candidate is a good fit for the team in terms of criteria such as relevant experience and technical ability. A second set of interviews serves to make sure that the job applicant fits in well with the company’s culture. People must pass both interviews before they can be hired.

Ultimately, the total costs of making a bad hire can really mount up. There are hiring costs, compensation and the cost of maintaining the employee. Combine this with disruption costs, a severance package and mistakes, missed business opportunities and failures that will wind up costing an organization as much as $840,000, using the example of a second-tier manager earning $62,000 per year who is terminated after 2.5 years, according to statistics provided by the Undercover Recruiter.

Techniques for Avoiding Bad Hires

Hiring managers have a variety of techniques they can implement to avoid making bad hires. For example, it never hurts to prepare “too much.” A great job applicant will do extensive research before coming in for interviews, and hiring managers should do the same. If you’re hiring for a technical position, it’s a good idea to speak with a member of your team who is an expert in the area to get specific advice on questions to ask the recruit, notes a recent article at Linkedin.

See how the applicant treats everyone in your company. Ask the receptionist whether the job seeker treated him or her courteously or rudely. This is a good way to see how candidates will fit in at your business. Combine this insight with any clues you can glean from the recruit’s social media pages, such as Facebook profiles and Twitter feeds.

To see if your candidates are paying attention, Business Insider recommends that recruiters insert an unconventional request in the job application, such as a list of three websites that the candidate often visits. The idea here is that if there is no response or only an incomplete answer, it’s not worth your time to conduct an interview.  By focusing more time on your recruitment techniques, you can avoid having to pay so much for bad hires in 2014.

Bad Hires Will Cost Your Company

May 16th, 2013

avoid bad hiring practicesA lot of work can go into finding and hiring the best people for your organization, as any beleaguered human resources professional can attest. However, hard work is required in all cases – there are no shortcuts to making great hires. No successful company is going to rely on blind luck and wishful thinking when it comes to adding new employees to their roster. In fact, bad hires will cost you plenty, according to a recent report in Quartz.

Approximately 60 percent of employers throughout the world have indicated that they made a bad hire last year, notes a recently released CareeerBuilder survey of 6,000-plus hiring managers and human resources personnel.

The survey was conducted by Harris Interactive. It shows that a large proportion of companies reporting that they hired employees who wound up performing poorly or were otherwise a bad fit are located in Russia (88 percent), Brazil (87 percent) and China (87 percent).

The percentage in the United States is about 66 percent, the same amount as in Italy. Bad hiring numbers are a little better in the UK, where 62 percent of managers reported they wound up with problematic employees, followed by 59 percent in Japan, 58 percent in Germany and just 53 percent in France. The report did not indicate how many of these bad hires had already been fired.

One reason for the large percentage of bad hires in the BRIC (Brazil, Russia, India and China) was because companies in these highly competitive, emerging markets are scrambling to hire from a smaller pool of qualified candidates.

HR professionals cited a rush to fill the job as being the main reason for making hiring mistakes. The second biggest reason was what the survey called “insufficient talent intelligence.”

The negative results of these bad hires include a reduction in employee morale, poor relations with clients, dwindling sales and increased costs to hire new workers. Most companies pointed to losses in productivity because of their poor hiring choices.

Some 29 percent of human resources managers in India indicated that their bad hires wound up costing them at least $37,150, while their counterparts in China said their loss was $8,734. About 25 percent of American managers reported that the cost of a bad hire is more than $50,000.

Given the fact that bad hires will typically lead to your company losing a lot of time, money and effort, it’s prudent to make sure your HR department exercises due diligence when searching for, qualifying and recruiting new employees. In the long run, it’s better to do the work up front and make sure you are hiring the best people, rather than working harder to clean up after the mess that’s left from hiring under performing workers.

Tips on Avoiding Bad Hires

February 15th, 2013
With advances in technology, human resources managers and recruiters have access to streamlined methods to locate and recruit potential job applicants. However, almost half of all new employees are not meeting the requirements of their jobs in the first year and half of employment, according to data from hiring managers reported in research carried out by Leadership IQ.
The hiring system is failing, according to a recent article in Business Insider, which cites statistics showing that a bad hiring decision can cost an organization from 20 percent to 200 percent of an employee’s annual salary. What’s more, bad hires result in lowered office morale and hinder productivity. Once bad hires get involved in office politics, it can be more difficult to fire them.
The problems only get deeper: workers who see their top managers making mistakes in hiring people can lose respect for the company and its procedures. They may wonder if the company has lowered its standards or if hiring managers are just asleep at the wheel.
Recruitment and applicant tracking systems certainly have made it far easier to manage a tidal wave of hopeful job candidates.  Recruiters and HR personnel should always still be aware that hiring is a constantly evolving space. Old methods employed by hiring managers may not work as well anymore to truly secure the best talent in any given industry. While harnessing the latest trends, like social media, can be benificial to finding promising candidates, empoloyers need to make sure that there is room for human judgment as well through all stages of finding new hires.
Savvy job seeks may employ less than truthful tacticts if they are desperate to get a foot in the door at your HR department. Software helps disorganized applicants churn out stellar-looking resumes.  However, aspiring workers can hire a resume consultant to bolster their appearance with the latest keywords that HR departments use to help them select which resumes are worth looking at and which ones are destined for the garbage can.
Once a manager has a set of resumes to examine in-depth, the filtering process may have problems. Some HR workers, frazzled by the workload they face, may select applicants at random from the stack of “good” resumes instead of evaluating each one on its merits. Or, even if they do take time to give each filtered resume a fair shake, they might focus on past experience rather than seeing which applicants can think on their feet and solve problems during an interview.
It’s also important to remember that extroverted people tend to do better in interviews, and a biased interviewer may not see that a less gregarious person is far more qualified for a position. If you are going to use keywords to filter resumes, make sure that you aren’t accidentally omitting terms that you do want to see. For example, using only the word “manager” might keep you from seeing a narrative resume that talks about how a person managed people or worked in management.
Once human resources managers and recruiters recognize the need to change the way they discover, filter and evaluate job applicants to fill key positions in their organizations, they will be well on their way to limiting the amount of bad hires they make.  This requires both utilizing the best technology available to filter incoming applicants, as well as employing savvy hiring managers to make integral decisions when required.

avoid hiring bad employeesWith advances in technology, employers have access to streamlined methods to locate and recruit potential job applicants. However, almost half of all new employees are not meeting the requirements of their jobs in the first year and half of employment, according to data from hiring managers reported in research carried out by Leadership IQ.

The hiring system is failing, according to a recent article in Business Insider, which cites statistics showing that a bad hiring decision can cost an organization from 20 percent to 200 percent of an employee’s annual salary. What’s more, bad hires result in lowered office morale and hinder productivity. Once bad hires get involved in office politics, it can be more difficult to fire them.

The problems only get deeper: workers who see their top managers making mistakes in hiring people can lose respect for the company and its procedures. They may wonder if the company has lowered its standards or if hiring managers are just asleep at the wheel.

Recruitment and applicant tracking systems certainly have made it far easier to manage a tidal wave of hopeful job candidates. Recruiters and hiring Managers should always be aware that hiring is a constantly evolving space. Old methods employed by hiring managers may not work as well anymore to truly secure the best talent in any given industry. While harnessing the latest trends, like social media, can certainly be beneficial to find promising candidates, employers also need to make sure that there is room for good old fashioned human judgment through all stages of finding new hires.

It’s good to keep in mind savvy job seeks may employ less than truthful tactics if they are desperate to get a foot in the door at your HR department. Certain resume software solutions can help disorganized applicants churn out stellar-looking resumes.  Job seekers can also hire a resume consultant to bolster their appearance with the latest keywords that HR departments use to help them select which resumes are worth looking at and which ones are destined for the garbage can.

Once a manager has a set of resumes to examine in-depth, the filtering process may also have problems. Some hiring managers, frazzled by the workload they face, may select applicants at random from the stack of “good” resumes instead of evaluating each one on its own merits. Or, even if they do take time to give each filtered resume a fair shake, they might focus on past experience rather than seeing which applicants can think on their feet and solve problems during an interview.

It’s also important to remember that extroverted people tend to do better in interviews, and a biased interviewer may not see that a less gregarious person is far more qualified for a position. If you are going to use keywords to filter resumes, make sure that you aren’t accidentally omitting terms that you do want to see. For example, using only the word “manager” might keep you from seeing a narrative resume that talks about how a person managed people or worked in management.

Once hiring managers and recruiters recognize the need to constantly evolve the way they discover, filter and evaluate job applicants, they will be well on their way to limiting the amount of bad hires they make.  This requires both utilizing the best technology available to find and filter incoming applicants, as well as employing savvy hiring managers to make integral decisions when required.