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The True Cost Of A Bad Hire, And How To Avoid It

Posted by The ConveyIQ Team

What is the true cost of a bad hire?

The phrase “employees are our most valuable asset” has become a cliche in the hiring world for a reason. Hiring the right individuals and nurturing a healthy team is the foundation of competitive advantage. While the potential for profitability is clear, it’s sometimes difficult to comprehend the negative impact a bad hire can have on a company — something that can extend well beyond any immediate lack of productivity surrounding a role.

Underestimating the potential impact a single individual can have on a company, whether it be positive — or negative — can jeopardize company success and survival. The best way to avoid this is learning from other companies’ mistakes when hiring. Companies usually hire the wrong candidate because they are pressed for time, did not perform adequate reference checks, or did not research the candidate’s skills thoroughly enough. This can be avoided by following these six simple steps in the recruiting process:

Implement a values-based approach

It’s important to weigh certain traits like character and integrity when establishing desired roles for a given position. Values like these can’t be taught, and are paramount to a candidate’s success within the company.

Establish desired roles

Prioritize attributes that the role demands and make a clear distinction between mandatory qualities and ones that could be developed. Once these requirements are carefully articulated, do not compromise them.

Don’t rush the process

Rushed recruiting processes can lead to desperation hires. Don't overlook candidate flaws in order to fill the position quickly. Instead, find a way to use your time effectively to avoid making impulse decisions based on gut instinct rather than data.

Get a sense of your candidate’s personality

By introducing digital interviewing early in the hiring process, you can ask questions that will allow you to learn more about a candidate’s personality to determine if they are a good cultural fit.

Ask the right questions

Depending on the role, it is often important to understand how a candidate will react under certain circumstances. Carefully choosing interview questions to observe how they think and communicate under pressure will reveal a lot about their potential to succeed.

Be transparent

Make sure that your candidates are given a real representation of the company.  Don’t try to sugarcoat flaws or weaknesses. Welcome the candidate into a discussion of their potential to introduce change instead. Overselling the company will lead to false expectations, employee dissatisfaction, and a high turnover rate.

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