A bad hiring decision is expensive. Replacing an employee costs companies anywhere from thousands of dollars to hundreds of thousands of dollars. And this might just be the tip of the iceberg, as a poor hire will also have indirect costs, for example in regards to morale and company culture.
It’s Time to Streamline the Hiring Process
Companies are scared of making bad hires, but as a result they have designed bloated, bureaucratic hiring processes. The treatment has become worse than the disease. Companies can strip waste from their assessment process by reducing the number of interviews, replace consensus hiring by giving one hiring manager decision rights, asking interviewers to give numerical ratings rather than impressionistic assessments, and change your culture to reward those who spot great hires as opposed to penalizing the occasional mistake. Changing your company’s consensus-oriented hiring culture will not be easy. But the steps listed above can help you gain an edge in your industry by hiring highly productive employees that are overlooked by your competitors.