1 in 10 recruits are seen as a poor hiring decision
Management Insights: How to avoid common hiring mistakes from recruitment specialists, Robert Half UK, with 70% of HR directors admitting that they have hired someone who did not meet expectations.
As companies turn their attention to growth and profitability, the implications of a bad hire can be far more costly than first realised. More than half (52%) of HR directors said that loss of productivity is the biggest problem associated with making the wrong recruitment decision. Almost a third (30%) said that a poor hire reduces staff morale whilst one in five (17%) HR directors said that it has resulted in significant financial costs. These can include the employee’s salary and lost performance education and training costs to raise performance levels impacted productivity of the employee, colleagues and management potential loss of revenue and the ultimate cost to re-recruit for the role.
UK hiring managers were asked, “Which one of the following, in your opinion, is the single greatest impact of a bad hiring decision?” Their responses:
Lower staff morale
Source: Robert Half, 2015
Phil Sheridan, UK managing director at Robert Half, said, “In today’s business environment, competition for top talent is high and the job market is changing at a rapid pace. It is therefore essential that every employee demonstrates measurable results towards a company’s growth and strategic goals.
"To minimise the risk of a bad hire, employers need to continuously evolve their recruiting processes, ensuring they have the right people and practices in place to identify and secure the most sought after candidates. Businesses should also ensure they work closely with the HR department and a specialised recruiter to establish a robust recruitment strategy. "
Further research from Robert Half found that the vast majority (91%) of HR directors find it challenging to identify and recruit skilled professionals. The prevailing war for talent is anticipated to increase substantially over the next 12 months due to an ongoing skills shortage in the market. When identifying the challenges in sourcing and recruiting talent, over a third (35%) of HR directors cited a lack of niche or technical experts, followed by general demand outweighing supply (30%) and a lack of commercial business skills (22%). Only 13% cited slowed hiring during the recession resulting in a lack of candidates with the right skills.
Robert Half offers the following recruiting do’s and don’ts:
1. Go it alone
Consult colleagues on attributes and competencies for the open role, and work with a specialised recruitment consultancy to find the best candidates.
2. Neglect the job description
Providing detail to & lsquo;sell’ the job will result in better applications. Details such as team size, reporting lines, corporate values and training opportunities will all prove attractive to potential candidates.
3. Think the Internet has all the answers
Cultivate a talent pipeline by personally reaching out to your network and recruiting sources. Online tools can be valuable, but personal interaction is the most important aspect of the hiring process.
4. Take too long
Extend an offer once you identify your top candidate. Companies that don't move quickly risk losing good people to other opportunities.
5. Offer a low salary
Offer a compensation package that, at a minimum, meets the market standard. Stay current on prevailing trends by reviewing resources such as the Robert Half 2015 Salary Guide.
6. Fail to differentiate between must-have and nice-to-have candidate attributes
Identify the skills that are mandatory and those that can be developed. The goal is to hire the person who is the best match for the job and your work environment.