When assessing your hiring process, it’s just as important to establish how to avoid making a bad hire for your company as it is to have a system in place to keep it efficient and effective.
So what is the cost of a bad hire?
Forbes states that the cost of a new hire is around 1.25 to 1.4 times the base salary, and that’s before they even walk in the door.
If that new hire leaves the company before they bring in a return on your investment, that leaves the company at an even greater loss.
The good news is that this is 100% avoidable if you have the right framework in place to make the best possible hire.
The cost to hire is unavoidable, no matter which way you cut it, but avoiding further costs is something worth focusing on. Five ways that we like to advise our clients and partners to make the best hire possible are as follows:
- Relationship-based recruiting: This means keeping transactional relationships to a minimum.
2. Identifying candidates who have the necessary soft skills: Put more emphasis on the skills that will guarantee the candidate is a great fit for the team (i.e. a great attitude, proven experience with teamwork, leadership, and time management)
3. Write better job descriptions: This is your opportunity to make your job posting stand out from the rest. Be creative and let your personality as a manager, team, or company shine.
4. Be thorough while interviewing: This might go without saying, but push into the details of the interview. Keep the small talk for other conversations and dive in deep to find out why they want this opportunity, why they think they’re a good fit for it, and discover their needs.
5. Optimize your hiring process: The easiest way to save you the cost of a bad hire is to make sure your hiring process is optimized to be quick and efficient. Being in tune with the talent market, having your hiring process honed in to suit the needs of your organization, and ensuring streamlined feedback during the interviewing process are all ways you can optimize your hiring and save money in the long run.