Raymond L. Wheeler

Musings about leadership

Take a deep breath, slow down – hiring doesn’t need to be a pain

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agree-to-disagreeHiring, none of my clients enjoy hiring. In fact, they strongly dislike the entire disruptive process of finding a new person. The process is fraught with risk, expense, and distraction (hidden costs). Hiring, however, is not like removing a band-aid, do not just rush through it thinking that reduces pain. Hurrying through the hiring process exponentially increases pain. Hiring is more like creating a fine wine. You need the right process, the right ingredients, and time to age.  Which is to say, good hiring is as much about perspective as it is a good process.

Here are some stats on hiring that SHRM recently published. örgen Sundberg, CEO of Link Humans, estimates that bad hires cost as much as $240,000.  Several variables that go into calculating the cost to replace a bad hire in our experience. These include:

  • Recruitment advertising fees
  • Recruitment follow-up and review
  • Staff time for interviews
  • Relocation costs
  • Training costs
  • Reduced team performance
  • Disruption across related projects
  • Lost opportunity
  • Assessment costs
  • Placement services
  • Litigation fees

A 2015 talent acquisition study from Brandon Hall Group and Mill Valley, Calif.-based Glassdoor concluded that the lack of a standardized interview process makes a company five times more likely to make a mistake in hiring compared to those companies with a standard process. Look at your process. Do you have one? What makes it work or why has it failed? What needs to change?

Ten percent of the respondents to one survey noted that new hires did not work out because they did not fit the culture of the organization. Oddly, determining cultural fit is typically one of the last steps many companies take in hiring. Since skills are easily assessed through any variety of validated skill assessment tools, it makes sense to spend more time on cultural fit. In my work with clients, appropriate skills sets are determined through communication skill, behavioral interviews, and skill testing. Communication skills are used as a preliminary test of employee capability. We provide instructions on how to follow-up by requesting response in writing. If a potential employee cannot put together professional email response they are dropped. A quick phone interview determines whether they have the presence that is needed.

Part of cultural fit is understanding the work behavior and stress behavior of the potential employee. I use the Birkman Method Signature report to look for who may make the best team fit. The Signature report from Birkman isn’t a cure-all, but it will accelerate how long it takes to understand how the potential hire will approach their work and your existing team.

Brandon Hall Group research reports that strong onboarding processes improve new-hire retention by 82 percent and productivity by over 70 percent. In contrast, companies with weak onboarding programs are more likely to lose new hires in the first year! One researcher suggested that the onboarding process should be a year-long mentoring process that routinely checks in on new hire adjustment and development.

Hiring is inconvenient, bad hiring is extremely inconvenient. Review your hiring process. The best time to make improvements in the way you hire new people is before you need to engage the process. Don’t wait until you are under the gun to find someone and whatever you do – don’t just look for a stop-gap. You will loathe the day you hurried through the process of hiring. On the other hand, if your organization is growing, hiring is a consistent need. In addition to the good process, a good mental shift is also helpful. Don’t look at hiring as a pain, look at it as part of your work to meet your customer needs with excellence.

If you are the owner or the hiring manager of your company build the kind of networks that allow you to be exposed to the best employees. Recruit even when you don’t have a position open at this very minute. Why wait? Think about what your organization needs next year and the year after, not just what is needed today. Remember that open positions actually offer an opportunity to rethink how work gets done. Look at your existing team first. Who is moving up? Who else needs to move out? If you have to do the work of hiring then look at your entire team and ensure that you have the best team for where your organization is going. Don’t fear change – embrace it.

I am always happy to sit down with you and talk through how your company finds and places new people. Give me a call.

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Author: Ray Wheeler, DMin

Ray Wheeler - executive coach, confidant, mentor, leader, and friend. Ray is the author of, Change the Paradigm: How to Lead Like Jesus in Today's world. He is also an adjunct lecturer at LIFE Pacific College, Bethesda University California and Azusa Pacific University in cross-cultural leadership, leadership development, leadership ethics, administration, church growth, and mission in today's world. Certified leadership coach, certified Birkman Consultant, and certified in the iOpener Assessment (happiness at work).

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