Managers waste a lot of money hiring the wrong people.
For a hiring, estimates range from 1.5 to three times the salary for the full costs including things such as benefits, taxes, equipment, training, office space, etc. But, it is even more expensive to hire the wrong person. The position becomes open; you place ads, search, hire and train. The person starts and you realize he or she isn’t a fit, let him or her go and start the process again.
That can easily waste a year, yet it happens all the time.
Taking your time is crucial
The most important thing you can do when hiring a new employee is to take your time. Finding qualified people who are a near perfect “10” match for your company does indeed take a lot of time. Anything less than a “10” will drag down your business. More times than not, when a position becomes open, managers very often hire quickly. Why is that?
Some managers really dread the interviewing process. It’s expensive, it’s a hassle, it’s an add-on to your busy day, and it’s tempting to move someone into place quickly to get the job done. No matter what the excuse, nothing is more important than hiring the right people. There are many ways to make sure you hire “right.”
Pre-employment profiling is one very valuable tool. When you Google “pre-employment profiles,” there are more than 7 million results. Pre-employment profiles tell you potential employee tendencies (something you are not likely to find out in a regular one-on-one interview). Profiles can detect characteristics such as sociability, fit, how likely the candidate is to stick it out in a demanding work situation, leadership traits and the like. Really good stuff to know.
You can also have top candidates take more than one profile. Your management team should also take a profile “to match up” with potential hires. In fact, many profile companies will profile your managers free of charge in hopes of getting more business.
When we’ve gone against a profile because we suspected it was wrong, we regretted it later. Profiling is a great way to get hiring done right. It’s much more accurate than your gut.
Check background and credit
Background checks are another way to determine whether or not to hire someone. If a person is having trouble with their life outside of work, it’s likely that will cause issues at work. Background checks are on a par with drug testing.
Here’s another idea: Why not do a credit check? Anytime I’ve mentioned this, people have questioned whether it’s right or not. If they have trouble managing their personal finances, they likely will have issues at work. But there may also be extenuating circumstances ? such as a divorce or illness in the family. Use credit checks to help get the “complete picture” of a person — and give them a chance to explain anything about the report they wish. Sometimes you can learn a lot by how a person explains or rationalizes.
There are also many online companies that will provide specific tests that can help you determine a person’s knowledge. For example, you could have a potential accounting person take a bookkeeping exam. The testing company will grade the exam and provide feedback. Or, you could create your own test detailed to the job requirements.
Break bread and talk
Take the candidate to lunch. You’ll learn more about them, and it helps to get away from the workplace atmosphere. They will open up and you will, too. Have them drive. Is their car a mess? This might show you how they will keep their workspace and whether or not they are detailed-oriented.
Let their future co-workers meet with them, too. The co-workers may see something you don’t, and it gives the candidate a chance to hear about your company culture.
When you hire the right people you have so much more time to work on the business instead of in the business.
David Harding is president and CEO of HardingPoorman Group, a locally owned and operated graphic communications firm in Indianapolis consisting of several integrated companies all under one roof. The company has been voted as one of the “Best Places to Work” in Indiana by the Indiana Chamber of Commerce. Harding can be reached at email@example.com. For more information, go to www.hardingpoorman.com.