From small businesses, nonprofits to publicly-traded companies, all organizations are looking for a way to hire top talent. But some are more successful than others. Why?
Every company looks at potential candidates through their own lens and systems that assesses their likability, skill and experience.
The traditional approach to screening candidates is based on a subjective process of reviewing resumes and holding a series of interviews. After the interviews, the human resources team discusses with members present whether the candidate is a fit for the position. From there, references are checked out and a final decision is made on whether the candidate receives an offer for the position. This process is widelyaccepted as “how you hire today”- but is it effective? As you evaluate further the standard hiring process we have to admit - it’s really a gamble. We roll the dice and hope we get a winner.
All job candidates are selected with the hope that they are a right fit for the position. But many aren’t. Unfortunately, a State of the American Workplace Report states “33 percent of American workers are engaged at work versus 70 percent of workers at the world's best organizations.”
What’s worse is that employee engagement in the U.S. hasn’t budged much at all in the past decade. Lack of engagement in the workplace is one indication of a wrong hire, and this trend hasn’t developed just recently. It’s been a problem since early 2000.
What is your company doing about lack of employee engagement?
It isn’t that recruiters are doing anything wrong, necessarily. It’s that they are following a process that is subjective and really doesn’t work. And to make matters worse, after the wrong hire is made, companies often seek to remedy the problem by doing things like moving the person around to other roles, boosting benefits that make company culture more enticing or improving salaries to earn the loyalty of an employee. While competitive salaries and positive company culture are good things, in the long run, these are reactive strategies, not proactive ones.
The truth about hiring the wrong person
Here’s what a wrong hire looks like for most companies, according to Gallup:
“These employees are not hostile or disruptive. They show up and kill time, doing the minimum required with little extra effort to go out of their way for customers. They are less vigilant, more likely to miss work and change jobs when new opportunities arise. They are thinking about lunch or their next break. Not engaged, employees are either "checked out" or attempting to get their job done with little or no management support.”
According to Mclean and Company,a low performer costs an organization approximately $3,400 for every $10,000 in annual salary. Furthermore, The U.S. Department of Labor provides us with statistics that suggest, “The price of a bad hire is at least 30 percent of the employee’s first-year earnings.” We encourage you to do the math and see what bad hires are really costing you.
What is at stake?
Here are a few of the reasons every company should reevaluate their hiring process. Hiring decisions affect all of these areas:
- Employee retention
- Company culture
- Product quality
- Customer service
- Brand loyalty
What if there was a better way to hire?
Bringing more intention around the practice of hiring is the solution. Often, a bad hiring decision is made in the early stages of interviewing, which means that it can be prevented with the guidance of a team of professionals with a track record of good hires. Coachwell is launching a new product offering for organizations called HirewellTM. With HirewellTM you engage with a trained hiring expert, utilizing proprietary software and professional interview process to completely revolutionize your hiring and talent acquisition.
Coachwell brings effective coaching around your hiring process to ensure your human resources staff have all the right tools to guarantee the next new hire at your company is a success. The HirewellTM process prequalifies candidates not just with a resume, but with something called The Applicant Tracking System (APT). This solution begins to sort candidates according to your team’s created Top Performer Profile©. This ensures your hiring standards are evaluated against your stated priorities and desired characteristics for this position instead of team biases or decisions that are made by committee. Coachwell then works closely with your team to assist in the decision-making process of onboarding a new hire, but the final decision always rests with you.
Coachwelll’s HirewellTM HR hiring system ensures your team has everything they need to select a Top-Performer. We believe in this process so much that we guarantee you’ll get a Top Performer for every new hire. For more details on HirewellTM and for a Coachwell team member to contact you, sign up here.