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How To Avoid The Hidden Costs Of Mis-hires

How to Avoid the Hidden Costs of Mis-hires

Have you ever hired someone who was a bad fit for your company? Studies suggest that around 75% of hiring managers have chosen the wrong candidate. Chances are if you’ve ever had to hire employees for your company, you’ve made a mis-hire at some point.

A poor hiring decision is a costly mistake the U.S. Department of Labor estimates that the average cost of a bad hiring decision can equal 30% of the individual’s first-year potential earnings.

Drastic financial costs aside, staff morale, engagement levels, and productivity also drop. A mis-hire can cause significant long-term damage to the company’s culture and resources.

Instead of focusing solely on skills and experience, make Work Style a priority in your hiring process. Use Work Style to reveal the attributes you’re looking for in a candidate, then to identify the most suitable candidate for the role.

By using a Work Style focused approach, you’ll be able to make better hires and avoid the hidden costs of mis-hires.

1.Be specific about your needs for the position

Make sure you define the role you’re hiring for accurately. A candidate’s desired skill set, educational background, and experience are all commonplace in job descriptions.

However, it’s important to go further than just skills and experience. Almost 90% of bad hires are the result of being a poor fit for the role, manager, or team, rather than a skills gap.

An accurate and detailed description of the ideal employee’s strengths, on-the-job-behaviors, and preferences is essential for attracting the right candidate. The more specific details you provide, the more candidates will be able to think carefully and realistically about whether the position is a good fit for them.

Taking the time to consider what your company can offer new hires, in terms of progression and benefits, can help you attract like-minded candidates looking for a specific work environment.

Work together with the rest of your company

Along with the rest of the team, think carefully about the kinds of communication styles, behaviors, and personal attitudes that would be beneficial to the role.

To help you and your team members correctly identify how you might like an employee to communicate, receive direction, make decisions, and contribute to a team, you can complete our free Position Assessment.

The assessment will help you and your team identify the exact attributes an ideal candidate would have, meaning you can write an accurate job description that truly reflects what you’re looking for in a candidate.

2. Don’t rush!

It can be tempting for businesses to rush into hiring a new employee.

In addition to being the hiring manager, you might have a lot of responsibilities inside your team and company. When you have little time to accomplish a lot of work, it can be tempting to make a quick decision. However, rushed decisions made on gut instinct and a resume alone can often backfire and become a costly and time-consuming problem.

Impulsive hiring can result in high turnover. Employee turnover costs US companies $160 billion a year— don’t contribute more to that.

Rushing into a decision isn’t just a financial risk. If you mis-hire someone, their lack of engagement and productivity can spread to the rest of the team and cause other members of the organization to question the company’s culture and look elsewhere for jobs.

An effective way to help you avoid a mis-hire and identify the right candidate is to write down the sort of personal attributes and soft skills a candidate might need to be a good fit for your company. Think about the position’s requirements and use the Work StyleTM  Assessment to help narrow down your list of candidates to only those who would be a great fit for the role.

How you can use Work Style to avoid making rushed decisions

Have applicants take the Work StyleTM Assessment in the initial application process, to narrow down your pool of candidates before interviewing. The 10-minute, user-friendly assessment will elicit information about the candidate’s on-the-job behaviors and preferences, so you can accurately determine if they’re a good fit.

Once candidates have taken the Work StyleTM Assessment, you’ll receive a Work StyleTM Match Report, a list which ranks candidates based on how well they suit the role and team. Using this list, you’ll be able to interview fewer, more suitable candidates, saving you time, money, and headaches.

3. Spend time properly getting to know a potential employee

If the hiring process isn’t thorough, your company may find itself with an employee who isn’t the right fit, and therefore, holds back your team.

While a candidate may seem to have the right skills, qualifications, and experiences on a resume, this doesn’t demonstrate how they may respond to different kinds of management or how they may fit within the team. That isn’t on a resume.

Multi-stage interviews, group tasks, and trial periods can all help you work out how a candidate may fit the role.

Go further

It is essential to go deeper than standard job interview questions. This is a chance to see how potential employees react on the spot. Try using a range of performance-based and situation-specific questions. If you’ve used our free position assessment you’ll also receive an Interview Guide for the work style you identified in the assessment. Use this to dive deeper into specific strengths and opportunities.

A Work StyleTM Assessment can accurately determine a candidate’s work style and whether they will thrive in your workplace.

Some people might work well with flexibility and ambiguity, whereas others might need a more structured environment. Some people might be more logical and work better with clear processes, while others may value initiative and freedom.

It’s essential to know a candidate’s Work Style before judging whether they’ll be a good fit for the position. A Work StyleTM Assessment will quickly and effectively tell you a candidate’s strengths and style of working.

Mis-hires are common in all companies, but they don’t have to be. You can avoid the damage to employee morale, productivity, and engagement that come with mis-hires by using the Work StyleTM methodology. By changing the way that you approach the hiring process, you’ll be able to avoid harmful hidden costs — financial and cultural — and allow your team to thrive.

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