Get expert advice on every topic you need as a small business owner, from the ideation stage to your eventual exit. Our articles, quick tips, infographics and how-to guides can offer entrepreneurs the most up-to-date information they need to flourish.
January 12, 2021
Hiring the perfect employee can be a challenging task, especially in today’s fast-paced, highly-competitive recruiting environment. The hiring process is complicated, and requires a lot of time, effort and resources.
The wrong hire can cost a company dearly. According to the U.S. Department of Labor’s estimate, the average cost of a bad hiring decision is at least 30 percent of an employee's first-year expected earnings. This means that in order to hire someone at an annual salary of $50,000, the cost of hiring can be as high as $15,000.
The Undercover Recruiter puts the cost of a bad hire at $240,000, keeping in mind the costs of the hiring process, salary and retention. Apart from monetary expenses, poor hiring decisions also waste the organization’s time and slow the progress of conducting business.
Still, businesses continue to hire reactively without having any strategic recruitment plan in place.
Take a look at eight common hiring mistakes companies make so you can adjust your hiring strategy, rectify mistakes, improve your hiring process and boost talent acquisition outcomes.
Hiring new staff members requires foresight — you must know what you require in the long term. Therefore, recruiters should understand what their organizations aim to achieve in, say, the next five years, and how they will be using the new hire(s) to get there.
An efficient recruitment process needs structure for strategic hiring; otherwise, you end up hiring ill-fitting candidates, which lowers productivity and often results in an increased turnover rate.
Keep in mind that finding the right candidates takes time. However, recruiters often choose speed over quality under pressure in order to fill positions, which could lead to skipping essential steps in the recruitment process.
Attracting the right candidates from a large pool of applicants is extremely important. According to research by PageUp, in 2020, only four percent of applicants across all industries were hired, which means for every 100 applications received, only four people were hired.
One of the top reasons for this is the lack of inaccurate, incomplete or vague job descriptions, which may result in an obscenely high volume of applications. A job description should be to-the-point, clearly describing the role, responsibilities and qualifications required for the job.
Often, recruitment specialists do not collect feedback from candidates, especially the ones they have rejected. This is mostly because they believe feedback from rejected candidates will always be useless or negative.
Feedback from all candidates, rejected or otherwise, can help improve the recruitment process, as the candidates may offer suggestions on how to improve the processes you use.
Another common mistake many recruiters make is that they keep posting the job openings on the same job sites. The problem with this is that the same job boards typically attract the same type of candidates. Also, not all job promotion outlets are relevant for all types of openings.
An extremely long hiring process can have a significant impact on a recruiter’s ability to fill positions quickly and competently. The top candidates often lose interest and are quick to accept offers from other companies that move faster. In fact, 60 percent of recruiters say that they regularly lose candidates before they are even able to schedule an interview.
Rushing through the hiring process, on the other hand, can hurt a company, especially if they have to keep going back to fill the same position over and over.
While technology such as recruitment software simplifies the hiring process, it is not a good idea to rely on it completely. This can make the process feel impersonal to certain candidates.
Also, lack of response from potential employers can lead to frustration in job seekers during the overall job search. Shockingly, 77 percent of job applicants receive no communication from the company after applying for an advertised position.
A candidate with all the required experience and skills is great, but it’s also important to account for personality and cultural fit. This is because all team members should be able to work well together toward a common goal.
Most human beings operate on emotions and, therefore, biases. Biased decisions are made every day in companies, and are not limited to hiring.
Hiring decisions based on facts ensure that the decisions are made based on pure data, which allows businesses to match the candidates’ job profiles with the skillsets required for a specific position and ultimately find the best-suited employees.
A rising attrition rate has made the job market tougher than ever, hitting small- and medium-sized businesses particularly hard. However, with a strategic approach in the form of full-cycle recruiting, companies can get a better return on investment when it comes to managing talent.
Neha De is a writer and editor with more than 13 years of experience. She has worked on a variety of genres and platforms, including books, magazine articles, blog posts and website copy. She is passionate about producing clear and concise content that is engaging and informative. In her spare time, Neha enjoys dancing, running and spending time with her family.
People Management & HR
People Management & HR
We provide you with essential business services so you can focus on growth.
