According to the Harvard Business Review, 80 percent of turnover is caused by bad hiring decisions. These are costly mistakes. The U.S. Department of Labor calculates that it costs one-third of a new hire’s annual salary to replace him. These figures include money spent on recruitment, selection and training plus costs due to decreased productivity as other employees fill in to take up the slack.
But these numbers don’t reflect the intangible damages an exiting employee can have such as lost customers and low employee morale across the rest of the organization. And, turnover costs climb even higher as you move up the organization: mid- and upper–level managers can cost over twice their annual salary to replace.
Interviewing Doesn’t Work
Traditional interviews don’t help you select top talent. In fact, a large study conducted by John and Rhonda Hunter at the University of Michigan on the predictors of job performance found that a typical job interview increased the likelihood of choosing the best candidate by less than 2 percent.
Worse, the traditional job interview is a highly subjective process. Interviewers often have a range of biases that dramatically affect their perceptions of individual job candidates. Despite the best of intentions, interviewers and supervisors have an unconscious tendency to favour people who are similar to themselves.
An interview-only hiring process can create teams that get along reasonably well - but lack the blend of skills needed to excel in business together. To consider an alternative to the traditional hiring process, visit www.HiringSmart.ca or www.HiringSmartAmerica.com. Start with the section called "A Case For Change". With a focus on the four critical aspects of Fit, you will increase revenues, improve productivity while reducing expenses.
No comments:
Post a Comment