While it may be difficult to calculate the exact cost of a hiring mistake, there is no doubt that a bad hire is a costly proposition. It is commonly mentioned that a hiring mistake costs somewhere between 2-5 times the salary of the person. A study by the Society for Human Resources Management (SHRM), puts the figure at five times the annual salary. SHRM also found that the higher the person’s position and the longer they remain in that position, the more cost is associated with this bad hire. Many companies don’t resolve poor hires quickly which can escalate the costs.

What are the root cause issues associated with hiring mistakes? These mistakes typically fall into one of three baskets: 1. Poor skills match. 2. Not a good fit (intangibles.) 3. Didn’t understand expectations. Other performance related issues can come into play but taking steps to mitigate these three factors can greatly reduce your hiring mistakes.

Here are 8 actions that recruiters stand by that will help prevent hiring mistakes:

1. Fully identify and understand the profile of the successful candidate. Consider all factors that determine success. This includes motivation, character, emotional competency, fit with culture, personality and values etc. Too many times hiring managers are infatuated with a certain skill or experience aspect and loses sight of other critical requirements.
2. Interview for desired intangibles. It is easy to get very focused on behavioral interview questions developed from the job description and key requirements of the position. We can all agree that success takes place as a result of a person’s drive, willingness to take good risks, deal effectively with people, fit well within their environment etc. We tailor interview questions to successfully evaluate all aspects of the candidate that will impact performance.  

3. Evaluate the potential candidate against goals and expectations, not job descriptions. The creation of a list of desired accomplishments, expectations and projects to complete will serve you in three ways. 1. Allow you to develop questions and evaluate the candidate against actual expectations. 2. Create the right expectation with the candidate. 3. Give a good start to the critical on-boarding plan.

4. Gather feedback and listen. Even the best talent agents have blind spots. Everyone succeeds when the decision maker is listening to those around them. Be thoughtful about the individuals that you involve in the process and gather feedback from these stakeholders as part of your decision process.

5. Red flags should never be ignored or discounted. Learn to read basic signals that a candidate might be sending. For example, if the candidate is not responsive or slow to respond during the hiring process consider this a message. Either they are not very interested in the job or they are not likely to ever be responsive. Every candidate tells a non-verbal story. This is every bit as important as the actual interview as they are glimpses of the person that you are potentially committing to hire. Consider a meeting with the candidate in a less formal setting such as a meal to observe their behavior.

6. Ask the candidate to make a presentation. This can either be a response to a set of questions or a specific problem. Alternatively, leave it to the candidate to present what they want to communicate about themselves as a candidate for the position. This gives you a look at the quality of their work and a glimpse of how they might perform in a work situation.

7. Use an assessment as a final step to provide additional affirmation. The right assessment will help you further understand the candidate. The five data points to consider when making sure you have the right candidate include: 1. Experience fit with role and related track record. 2. Interview answers and feedback (tangible and intangible.) 3. References (yes you can get good information from a reference check.) 4. Assessment. 5. Candidate interest level and motivation. These five factors together present the whole picture. While the “Perfect” candidate does not exist…you will have a much fuller picture of the candidate by consistently taking all of these factors into consideration.

8. Create an effective on-boarding or “integration” plan. Many employers feel on-boarding is something the human resources area does. In reality, effective on-boarding sets the person on the right path and helps ensure they are fully equipped to navigate complex relationships and a new set of company behaviors. Getting off on the wrong foot can be difficult to overcome. Make sure the candidate fully understands your expectations. As an example, are they expected to listen, learn and build relationships or deliver specific results in the first six months? Build bridges between the new person and key internal stakeholders. This might include introductions or participating in initial meetings. Time spent on these “integrations” will pay dividends increasing effectiveness and potentially preventing disconnects that may lead to early turnover.

NPAworldwide member firms always provide clients with the best and brightest resource on a contract, contract to hire or full-time basis. They are backed by a network of 1500 highly qualified and trained consultants who are constantly in touch with top talent ready to pursue your needs and provide solutions. 

The opportunities and rewards that come along with transitioning a business in to a global operation are plenty, but so are the risks. Once your home operation is steady and strong, moving to new strategically picked markets is a good next step for the right company. As a global organization, our recruitment member’s clients frequently take on this type of expansion. Here is an informative case study on how a they accomplished a move to a new market using their international recruitment firm.

A network client, a privately-held US manufacturing company, had a strategy that called for a phased expansion into China. Their plan was to develop a supply chain for materials while cultivating short-term contract manufacturing partnerships.  The ultimate goal was a dedicated China-based manufacturing operation.

The immediate challenge was a need for local talent in advance of the brick and mortar expansion of operations.  The manufacturing company’s EVP had a relationship with a local US-based recruitment firm, one of our 500+ partner affiliates. Our affiliate firm explained how their network enables global connections to meet talent requirements anywhere in the world. The EVP partnered with our affiliate firm to leverage their network for the identification of local Chinese candidates for the China-based supply chain development position.

Our affiliate activated their connections with Asia-based partners. The local affiliates took on the challenge and developed a shortlist of candidates for the position. The manufacturing company’s hiring managers went to China to meet with the candidates sourced by affiliates.  Within two weeks, a preferred candidate accepted an offer and set a start date. Throughout the process, our partner firm, with assistance from the local  affiliates provided coaching on local HR requirements, payroll issues, housing and other critical details that made a successful close to a complex process possible.   

The manufacturing company’s expansion plans are on track and full speed ahead.  A single point of contact with an international recruitment firm local to their headquarters location, allowed for global connections and the leveraging of those valuable affiliations for a confident and well planned expansion into a new market.

There is no question that currently the hiring needs of employers require more time and diligence than ever with much of the power in candidate’s hands. When you are considering signing on a new recruitment agency, consider asking these questions to ensure you are contracting with an elite agency.

1. What are the top reasons a company would use your services to recruit?

In the history of knowing independent recruitment firms, our network believes the answer to this should come from longevity and results. A firm should be able to show stability in business and understand how to effectively build your talent in a sustainable manner for the growth of your company. Regardless of your expansion efforts, a strong firm will have a specialized and locally based recruiter able to provide you the top candidate in the market.

2. Are you able to take on international searches?

While many independent agencies attempt to say yes to multinational and international clients, unless there is a localized approach, the search can result in less than satisfactory results for the client. With a true global firm, the recruiter speaks the language of the search. They understand the culture, common terms, idiosyncrasies, and the demands each part of the world brings to executive level placement. The result is the top candidates presented at every search they recruit on.

3. Why should I use an agency instead of internal resources?

Many employers may shy away from hiring an external agency suspecting they will save money by first utilizing internal resources. However, in many companies, this cost savings will be severely miscalculated and further result in wasted time and money. When a company hires an external agency, most times they have already spent nearly 6 months trying to fill the role internally. Those 6 months are hard to calculate from a monetary perspective, however during that time your employees and organization are undoubtedly under an extreme amount of stress and pressure.

While these questions are not all inclusive of what you should be considering when hiring an external agency, they should get the conversation flowing to determine if it is the right fit for your business. Please visit npaworldwideworks to learn more on choosing a recruitment firm for your needs.

On-boarding a new hire is not a new concept, however, as we hear more and more about company culture and changing workplace structures, it is important to also keep your on-boarding process up to speed. Turnover is expensive, and many C-Suite executives state that a key factor in employee retention efforts lies in the on-boarding strategy. As a company, your goal should be to build your new hires trust in the organization along with teaching them the relevant job skills. Here are a few ways to freshen up your existing process.

“Organizations with a strong onboarding process improve new hire retention by 82 percent and productivity by over 70 percent.”Source: “The True Cost of a Bad Hire,” Brandon Hall Group

As mentioned, the goal with onboarding should be to build a new hire’s trust in the organization. If you present a welcome package and environment already set up for success with a clear outline of their first two weeks of employment, it sets a clear tone that you were expecting them and have your priorities organized well.

A great example of this lies with Twitter. This social media giant has an elaborate 75-step process for the first day. On the first day, new hires not only have breakfast with the CEO followed by a tour of the company office, but when employees arrive, the company has their email ID, a t-shirt and a bottle of wine waiting at their desk. A tour is followed by group training on the tools and systems relevant to their role. Twitter also does a monthly new hire happy hour where they introduce the senior leadership team.

Another idea to make a memorable first day is to eliminate the load of paperwork. Many companies have an overwhelming amount of forms to sign and complete as soon as a new hire enters the building and this does not create an immediate grand environment. Consider using a software such as Zenefits to spread the paperwork out and give new hires some independence in completing it on their own time before and during their first week. You will still be able to assign due dates and track progress, but it allows a much more relaxed feel to signing all the dotted lines.

Linked-In chooses to settle some of the HR topics in a lunch and follow up session titled “Investing (IN) You” which covers company benefits in an appealing manner that shows how invested they are in their employees. They close the first day by providing a new hire on-boarding road map that gives a week by week guide outlining how to be productive and successful in their new role.

Also, switch up the feedback loop. “In a recent poll, 38 percent of employees felt that when leaders dismiss their ideas without entertaining them, they tend to lack initiative. An active and committed employee base is one of the benefits of listening to your employees.”Source: “5 Reasons Why You Should Listen to Your Employees,” SHRM

While a new hire is not likely to tell you anything is awful straight away, avenues for open feedback allow new hires to present problems or solutions that you may not even be aware of, and can work through to change what could be a foreseeable trouble spot.

A closing great practice is to circle back with the recruiter who initially sold the candidate on the position. Especially when using agency recruiters, they have likely developed a strong relationship with the candidate and are keenly aware of what made your position or company a good fit for that individual. Working together to create a brief on what to highlight during the new hires initial 60 days will result in a more personalized on-boarding process that the new hire can feel the value in. A tailored approach is the new best approach.

If you’re looking to build a relationship with a trusted recruitment agency, click below to learn even more benefits of using one of our 500+ firms worldwide.