Avoiding the Negative Impact of a ‘Bad Hire’

poor fit hiresNo company wants to make a bad hire – someone who is not a good fit for the organization and has a negative impact.

Yet 95% of organizations admit to hiring ‘bad fits’ each year. Companies in growth mood want to fill positions as quickly as possible and often do not think about the implications of a bad hire. They also underestimate what the true cost is and how many variables can leave a lasting negative impact.

A new research report by Brandon Hall Group uncovers the devastating impact a bad hire can have on organizational growth and performance. So, what options do organizations have? How can they better identify bad hires early in the recruitment process and what strategies should they consider?

Below are a few recommendations organizations should consider to improve the quality of hires and reduce the cost of a bad hire, based on Brandon Hall Group research.

  • Take a strategic approach to hiring. Organizations that want to eliminate the cost of a bad hire should standardize the interviewing process and provide hiring managers and recruiters with the right tools to ask questions and evaluate candidates. 60% of organizations that leverage best-practice guidelines for conducting interviews have an optimized recruitment strategy (one that aligns with business objectives), compared to 10% of companies without interview guidelines.
  • Strengthen Your Employer Brand. An employer branding strategy should be a priority for any company looking to reduce the cost per hire. Organizations that invest in employer branding are three times more likely to make a quality hire. When an employer brand can accurately reflect the company culture, organizations will have an easier time attracting the right talent.
  • Consider the Candidate Experience. Organizations that invest in a strong candidate experience improve their quality of hires by 70%. In many industries such as retail and professional services, candidates are also customers. Organizations should put the same rigor into the candidate experience that goes into the customer experience to ensure these individuals will perform, stay motivated, and want to stay with the organization.
  • Assess Candidates Often. Only 5% of organizations evaluate candidates during the sourcing process. The key to successfully mitigating the risk of a bad hire is to evaluate candidates often in the recruitment process, starting with the sourcing process. If organizations are able to identify potential problems with a candidate early on, they can reduce the costs associated with screening, assessing, and interviewing that individual.
  • Look Beyond Hard Skills. Organizations often look only at the skills and competencies posted on a job description. In doing so, they fail to learn whether the candidate demonstrates behaviors consistent with the values and culture of the organization, has potential for leadership – or behaviors or values that might limit advancement.

Claude Werder, VP/Research and Product Development, Brandon Hall Group

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Mike Cooke

Chief Executive Officer of Brandon Hall Group Mike Cooke Prior to joining Brandon Hall Group, Mike Cooke was the Chief Executive Officer and co-founder of AC Growth. Mike held leadership and executive positions for the majority of his career, at which he was responsible for steering sales and marketing teams to drive results and profitability. His background includes more than 15 years of experience in sales, marketing, management, and operations in the research, consulting, software and technology industries. Mike has extensive experience in sales, marketing and management having worked for several early high-growth emerging businesses and has implemented technology systems to support various critical sales, finance, marketing and client service functions. He is especially skilled in organizing the sales and service strategy to fully support a company’s growth strategy. The concept of growth was an absolute to Mike and a motivator in starting AC Growth, in order to help organizations achieve research driven results. Most recently, Mike was the VP and General Manager of Field Operations at Bersin & Associates, a global analyst and consulting services firm focused on all areas of enterprise learning, talent management and talent acquisition. Tasked with leading the company’s global expansion, Mike led all sales operations worldwide. During Mike’s tenure, the company has grown into a multi-national firm, conducting business in over 45 countries with over 4,500 multi-national organizations. Mike started his career at MicroVideo Learning Systems in 1992, eventually holding a senior management position and leading all corporate sales before founding Dynamic Minds. Mike was CEO and Co-Founder of Dynamic Minds, a custom developer of software programs, working with clients like Goldman Sachs, Prentice Hall, McGraw Hill and Merrill Lynch. Also, Mike worked for Oddcast, a leading provider of customer experience and marketing solutions, where he held a senior management position leading the company into new markets across various industries. Mike also serves on the Advisory Board for Carbon Solutions America, an independent sustainability consulting and carbon management firm that specializes in the design and implementation of greenhouse reduction and sustainability plans as well as managing the generation of carbon and renewal energy and energy efficiency credits. Mike attended University of Phoenix, studying Business Administration and Finance. He has also completed executive training at the Chicago Graduate School of Business in Chicago, IL.

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