Do you remember the last time you made a bad hire? There was a gut-wrenching feeling that something must have gone wrong in the hiring process. You probably spent many days hoping things would turn around and gave the person extra attention and training, hoping that something was missed during the onboarding process. You probably did everything you could prior to making the decision you knew you had to make. The termination was difficult. You and the employee were left wondering what went wrong.
In addition to the extra stress the bad hire put on you, it had a significant cost to the company. The cost of unwanted turnover in a position can be from 50% to 150% of total annual compensation for the position. If it is a sales or managerial position, the cost can be as much as 250% of total annual compensation. In addition to the wage or salary paid to the individual, costs come from recruitment, training, and productivity losses.
Many businesses laid off workers when the economy tanked over a year ago. There are at least some small indicators that the economy is starting to pick up. Businesses seem to be hiring again. Below are some key ideas to aid in implementing a successful hiring process:
1. Have a current job description from which to create a recruitment campaign.
2. Screen candidates according to the criteria listed in the job description.
3. Craft behavioral interviewing questions.
4. Perform background or reference checks.
5. Make a job offer that contains complete information about the job.