Hiring the Wrong Person
When was the last time that you had to add a new team member to your staff?
Did you view it as a strategic opportunity to improve your business?
Unfortunately, most business owners don’t understand the importance of hiring the right person. They treat this task like buying a new copy machine – it’s a pain in the butt, but it’s got to be done.
Numerous studies have shown that making the wrong hire can be disastrous. In fact, conservative estimates of turnover show that making a mistake can cost anywhere from 2 to 3 times their annual salary. Even if you are just looking for a $30,000 receptionist, that’s $60,000 – $90,000. Can your business afford a $90,000 error?
So how do you avoid these mistakes? There is no magic formula, but here is a look at the results of typical hiring methods. This study analyzed the likelihood (in percentage) that a new hire would be successful based upon the hiring method.
- Interviewing only – 14%
- Reference checking – 26%
- Personality Test – 38%
- Abilities Test – 54%
- Interest/Motivators Test 66%
- Job Matching (all of the above combined) 75%
The message is clear – take the time to make sure that you get the right person the first time. There are a handful of useful (and relatively inexpensive) tools to help you make the right decision.How much time have you spent in the last year agonizing over a bad hire?
- How much productivity has that caused you and your staff?
- Will you hire differently next time?
