Today I want to share how to avoid hiring the wrong person for your open position within your business.
Did you know that mis-hires can cost businesses billions of dollars in lost productivity and missed opportunities each year? Today I want to take a look at what they are and how to avoid them.
A mis-hire is someone who was hired or promoted internally but doesn’t meet expectations. When this happens with a managerial position, it is estimated that it costs at least five times the person’s annual compensation. How can it add up to so much money loss? Because it’s not just the wages for that person, but also the cost of recruitment, interviewing, training, and onboarding a new employee.
Hiring the wrong leader can also create a loss of top talent within your organization, so now you have even further increased hiring costs for your business and lower productivity for your team. This can also create a loss of customers because of poor client experience.
So how does a mis-hire even happen? We usually see it happen in a few different ways, such as hiring too quickly or too slowly and losing the best talent. Another challenge is the lack of options and not searching for the best candidates long enough. Poor skills-matching by internal interviewers can also turn into a mis-hire if they aren’t looking for the right skills for the job.
The cheap, easy recruitment route will likely be pennywise, but you’re limiting your talent coming to you; even internal promotions can be limiting. Of course you have to promote internally for your organization’s health, but don’t limit yourself.
How can you minimize mis-hires? Partner with a top search firm in your niche that has a documented track record of success. We as top recruiters have unhindered access to a broader talent pool and also a broader perspective on the industry, so we can interview more objectively and thoroughly.
We appeal to top candidates because we can provide options for them and direct them during the interview process to the best fit for them and you. We can also open doors to candidates who may not be searching for a position because they are happy with their current position or are biased against your company.
As an employer, think about the last mis-hire that you made and be honest about what they cost you in missed sales, employee turnover, and the other things I mentioned. Then, weigh that against the fee of a quality recruiter who engages with you to recruit and screen a quality applicant.
If you have any additional questions about this or you want to talk more about recruiting in general, please feel free to reach out to me. I look forward to speaking with you soon.