According to the Harvard Business Review nearly 80% of employee turnover is due to poor hiring decisions.

Imagine if you could reduce employee turnover in your organization simply by selecting the right candidates from the very start.

Poor Hiring Is Expensive

There are plenty of variables that come into play when a company hires a new employee:

• Recruiting
• Interviewing
• Travel
• Training & Onboarding
• Assessments

If the person you hire ends up being a poor fit, you also have to consider termination costs. If the situation turns sour, you may deal with litigation and unemployment costs, as well. Not to mention the process of re-hiring yet another employee. It’s a vicious cycle!

More Than Monetary Costs

Perhaps more importantly than the costly sticker price, poor hiring takes a hit to company culture. Consider how high employee turnover due to hiring the wrong people can impact:

• Team Morale
• Culture
• Client Relations
• Sales
• Quality
• Performance & Production
• The Impact to Employees Is The Greatest

When an employee is terminated, it can put the rest of the team under pressure and at disease. Concerns of their own stability and safety may come into question; not to mention the added workload to compensate for the departing team member.

What Causes Poor Hiring Decisions?

The answer isn’t black and white, and certainly varies for every organization. However, a few common themes ring true when it comes to poor hiring decisions.

• Not enough time: Finding the perfect candidate takes time and energy — it’s not a decision that can be made on a whim, especially if you want it to be a lasting one. Often, executive and hiring managers don’t take the time (or don’t have the time) to give the hiring process the consideration it deserves.
• Faulty job description: When the job description doesn’t accurately portray the role, you run the risk of hiring for the wrong skills. In addition, expectations are skewed from the very start, as the employee believes their function is different than what reality requires.
• Unclear performance objectives: Again, it’s all about expectations. If specific goals and targets are not laid out and measured, it’s difficult for an employee to know what they’re working towards.
• Cultural mismatch: On paper, the candidate may be perfect for the role, but in reality they don’t quite “mesh” with the team. It’s important new candidates are assessed by more than one existing employee, to assess their fit into the company culture.

How to Hire Better

Take your time.

Easier said than done, right? But if you don’t want to be in the same position a few months down the line, executives and hiring managers must devote considerable time and energy to the hiring process. Leverage a service to help vet your

Look beyond the resume.

The right candidate has to have more than just the right skills. Consider how the candidate will culturally fit into the organization and fit into the team. It is important to have the candidate spend time with team members. As the hiring manager, solicit feedback from the team to score the fit.

Update the job description.

Involve the people closest to the role in writing the job description. Even better, get the person actually doing the job to write it.

In addition to the Job Description, you should have a Performance Results Description (PRD). This document clearly explains the expected performance requirements, level of performance, measurement method and metrics and time frames for measurement and feedback. Using this method removes the “surprise” at the Year-end Performance Evaluations and lays out a path to success.

Involve your team in the hiring process.

Decide who in your team will be involved in the hiring process and plan to have the candidate interview with multiple people before making a decision. It should never be a solo endeavor.

Make them want to work for you.

Hiring a new employee should be a mutual decision. A candidate that wants to work for your organization, rather than someone just seeking a job will have a higher chance of success. Make a personal connection, offer competitive employment packages and show them why working for your organization is in their best interest.

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