We all have unique backgrounds, levels of education, and industries in which we work. But I'm very confident there's one thing we have in common: We've all been part of a hiring process. Even if you aren't directly involved in your company's interviewing, employee assessment, or onboarding process, you likely have your opinions on how your process stacks up compared to others you've participated in or heard about over the years.
Let's take a look at a few of the very real impacts that hiring has on your organization:
This one is fairly obvious, but hiring the right candidate the first time around means a lot to your bottom line.
On average, the cost of a bad hire can be the equivalent of 30% of that employee's first year earnings, according to the U.S. Department of Labor. They also note that, as can be expected, the stakes grow depending on the level of the position with the company.
We all know the degree of involvement and planning that it takes to bring in new employees, train them, and get them up-to-speed in their respective positions. If a candidate in turn leaves within the first few months, you have lost those onboarding costs, salary and benefits, and money associated with your HR Department's time. Not to mention the loss of productivity and the inevitable list of work that is piling up.
Even if you still have some qualified candidates in the pipeline and avoid paying advertising for the next go-round, recruiting and interviewing time is not free.
The type of people that you hire matter. Period.
Culture is a term that is pretty common to hear nowadays when companies describe the atmosphere that encompasses their office. If you have an established climate that works well and your employees appreciate, you want to continue that pattern of quality hires.
This is where measuring Motivational Fit can be key in the hiring process. Ensuring that the candidate's expectations of the job are the same as what you can and do offer will go a long way toward employee satisfaction and continuation of the culture that got you to where you are as an organization.
Let's be honest, people talk about their employers.
For better or worse, your line of work and your satisfaction with your company come up in conversation quite frequently. You, in turn, become an ambassador of your brand and company as a whole. That goes for everyone who has ever worked for - or even interviewed at - that company. You don't want to be known as the company that can't retain employees, right?
This is where a structured hiring and orientation process can pay off. Even those candidates who either weren't offered the job, or stayed for only a short time, should be able to walk away feeling like they were given a fair shake. They will then relay such information to those that they encounter in their various walks of life.
Never underestimate the power of 'word of mouth' both in conversations and the ever-present social media.
Clearly, hiring extends much further beyond getting a 'warm body in a seat.' At the very least, you need to consider the implications of hiring someone who doesn't fit the role either from a qualifications or expectations standpoint of the role. All of these aforementioned factors can be managed by laying out a clear vision upfront of what the job entails, the kind of experience required to be successful, and the kind of candidate who will uphold the culture and reputation upon which you pride yourself and your company.
See what happens when you do hiring right: