There is nothing more crucial to the success of an organization than bringing the right people on board and encouraging their growth. This is precisely why most successful companies take such a long time in hiring. But, sometimes recruiters do make bad hiring decisions which bring along a few fatal repercussions. Have you ever thought why it so happens? Firstly, every misfit hired leads to huge costs for the company in terms of salaries, other variables, induction training, on-the-job training, etc. Secondly, bad hiring negatively impacts the productivity of the organization, its culture, and morale. Thirdly, as per Harvard Business Review, 80% of employee turnover occurs due to faulty hiring decisions.
If the consequences of making bad hiring decisions are so fatal, why do companies get the wrong people on board? Well, we can cite 3 primary reasons:
- Unclear performance objectives: The job description is vague and doesn’t provide the interviewer any clarity on what they actually need to question candidates on.
- Poor skill-set: The candidate is hired on face value and lacks the necessary skill-set required to execute the role well.
- Cultural misfit: This can occur when a candidate, who seemed perfect on nearly every level, clashes with the organization’s culture since their beliefs are different from that of the organization’s.
So what makes you good at hiring? You need to know who you are as an organization, what you want from your employees, and what process determines if a candidate is a good fit.
Let’s take a look at how to hire right candidates and immediately put a full stop to making bad hiring decisions.
Chalk out competencies based on the job description
This is the most important step. The job description must tell you what the competencies required are. Competency comprises of knowledge, skills and attitude required for the successful execution of the job role. Question candidates to find out the extent of their competency. This process will make the interview a lot more structured, goal-oriented, and eliminate the greys. It will also help you to navigate the interview in the direction you want.
Make the most of the resumé
The candidate’s resumé is your insight into their personality, achievements, personal & professional life. Use the resumé as a mechanism to know them in relation to the job description. Also, ensure that you do not believe everything that the resumé says. Question and cross question all the relevant details that seem important for the candidate to be hired. Remember, suspicion at this stage will only work in your favour.
Look for the intangibles
A candidate’s skill-set isn’t limited to their functional abilities. It also includes how good they are with regards to the interpersonal equation with colleagues and/or customers. Employers who don’t take soft skills such as leadership and communication into account may set themselves up for a bad match.
Avoid the horns and halo effect
Halo Effect: If the first impression of a candidate is very positive, then interviewers tends to ignore the negative characteristics in the person and concentrate only on the positives. They start seeing the person with a halo of the positive first impression. This is known as the Halo effect.
Horn Effect: If the first impression of the candidate is negative, interviewers tend to ignore their positive characteristics and concentrate only on the negative ones. They see the person in the light of the negative first impression, thereby increasing the probability of not liking the person. This is known as the Horn effect. If an interview starts with a negative statement from the interviewee, there is a higher chance of him being rejected.
Stereotyping is the phenomenon where an interviewer develops an impression about a candidate on the basis of a characteristic or trait exhibited, opinion expressed or their appearance. For example:
- Not hiring or promoting married women because family is their primary focus.
- Hiring younger people because they have high energy levels and are very open to learning new technology.
- Assuming that candidates who are shy during an interview will not perform well on the job.
Woo your top choices
Hiring works both ways – while you may be convinced with a candidate, are they convinced about you as well? It is important that you clearly state the pros of working with your organization. Preferably, align it to what they think is important to them as a professional. You must tell them ‘what’s in it for them’ with respect to the compensation structure, growth pattern, career advancement, and other significant opportunities in your organisation. Good candidates must be lured. If not, you may lose them to a competitor.
Remember, patience is the key for it will keep you from making bad hiring decisions. You may have to interview a lot of wrong candidates before you select the right person. But remember that the right hire will most certainly make the wait worth it!