Posts Tagged ‘corporate recruiting’

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.

Dice Rolls into the Candidate Sourcing Tool Market with Open Web

February 19th, 2013

Last week, Dice, the leading career site for technology and engineering professionals, rolled into the candidate sourcing tool market with Open Web, a recruiting tool that allows users to search approximately 50 social and professional networks and billions of web pages to create an aggregated or “super” profile of a candidate’s professional experience. Very similar to TalentBin and Entelo, Open Web from Dice allows recruiters to search for candidates with desired skills and experience across the web from one interface. The profile aggregation functionality pulls together the disparate pieces of information from across the web so recruiters can easily put together a meaningful story about candidates. “Open Web not only pulls in information about candidates’ professional experiences but also about their interests making it a valuable tool for collecting the underpinnings that contribute to assessing cultural fit,” said Jeff Winter, a professional recruiter and General Manager at technology search firm Gravity People in San Francisco.

Screenshot from Infoworld

Screenshot from Infoworld

Open Web is likely just the first roll for Dice. There are rumors that the tech job advertising leader is currently testing technology that will allow recruiting firms and employers to use the Open Web technology to update their candidate databases with the most current profiles of past job applicants. This could be another great tool for recruiters and employers that are constantly sourcing high-demand passive candidates. And, if that’s not enough, Dice promises to release a professional-facing tool that will enable tech professionals to view and interact with their Open Web profile as recruiters and employers see it.

The Hiring Sciences Hunch

Historically, Dice has been a strong player in the technology advertisement vertical. Their pricing has always been fair and their reputation is as good as, if not better, than any traditional job boards in the business. The release of Open Web starts the latest chapter for Dice, expanding their footprint into the white hot sourcing tools space. We don’t think Open Web is a big gamble. Dice has a unique advantage that can’t be overlooked. They’ve been active in the recruitment market for over 20 years. They understand their users and their buying trends. This is not just a group of smart engineers and fresh MBAs sitting around room guessing what recruiters do all day. These guys have seen the market evolve for 2 decades and they are jumping in the game with lots of chips.

Our hunch is that Dice with their significant customer base and brand recognition has a strong opportunity to run the table in the sourcing tools category. Their entry in this space will certainly create competition for smaller vendors with fewer offerings and little brand recognition. Open Web also gives recruiters a good alternative to LinkedIn which has created some negative equity recently with it’s aggressive sales tactics and high prices.

For more information about Open Web, contact dice:

“Hiring managers visit many places in their search for candidates with the right skills and experience for their open positions.  In today’s social grid, that’s a big dig – consuming a lot of time putting together disparate pieces of information from across the web,” said Scot Melland, Chairman, President and CEO of Dice Holdings, Inc.  “Now, Open Web makes it easy by consolidating all kinds of valuable, public information about technology candidates in one place.  In a few seconds, employers get unique profiles with real depth allowing both an understanding of the candidates’ qualifications and how to approach tech professionals on a more personal, direct level.

Recruiting Excellence: Improve Your Upfront Processes

January 17th, 2013

hiring manager tipsDo sports coaches hold the key to recruiting excellence? Not according to Dr. Wendell Williams in his latest piece at Dr. Williams dismisses this commonly accepted principle by showing that, in the world of professional sports, talent scouts do the tedious vetting and groundwork, so that only the most gifted athletes get to meet the coach. You can find the full article here.

Compare this process to that of corporate hiring, with recruiters standing in for talent scouts and line managers for the coaches. The analogy isn’t perfect, because recruiters can’t actually see candidates in action on the playing field. Instead, they rely on resumes and screening interviews. Do line managers want applicants with the best interview performance or the best skills for the job?

In 1978, the DOL published “Uniform Guidelines on Employee Selection Procedures” which Dr. Williams condenses to three main principles for organizations:

  • Base standards for hiring and promotions on job requirements and business necessity.
  • Ensure that hiring tools accurately predict job performance by assessing their validity.
  • Reduce adverse impact wherever possible.

Why don’t those responsible for recruiting keep these three principles top of mind? Perhaps they lack the appropriate knowledge and HR technology, relying on cookie-cutter interview questions instead of job-specific competency assessments to hone in on a candidate. Recruiters without the right  training in job analysis and hiring tools may be able to get through a traditional interview, but rarely produce the best candidates.

In the end, it is the hiring managers who must deal with the consequences of bad hires and subsequent poor performance. True, they have their part in the selection process, but they also rely heavily on HR to narrow the field and provide qualified candidates. Once an employee is on board, managers are often left on their own to handle the difficult situation of insufficient skills and expertise, with the inevitable negative results on their team.

Clearly, the challenge for HR is to do more vetting upfront to avoid burdening line managers with bad hires. Choose the right recruiters, and equip them with the proper training and technology for recruiting excellence. Investigate job try-outs with a combination of tests, simulations and measurements, instead of traditional interviews. With improved screening reducing the number of unqualified hires, you’ll be limiting the number of poor performances with which line managers have to cope.

Recruiters, do more talent scouting, and you’ll be doing your hiring managers/coaches a big favor by sending fully-skilled candidates their way.