After more than a decade of hiring people on a daily basis I’ve seen a thing or two when it comes to good vs. bad practices relating to the process of hiring employees. During that time I’ve also made my fair share of mistakes in the people I’ve hired which offered up a plethora of learning opportunities. What I've learned over the years is that making a hiring mistake can be costly and most of the time it is the employers fault the hire doesn’t work out, not the new hire themselves.
Hiring an employee is an interesting and vital part of business. Interesting in that the end result is bringing on a new person into your company with the idea that they will fulfill a role to help the company move forward. Vital, because hiring really is one of the most important activities a business can do outside of generating revenue. Without revenue streaming in there is no need for hiring and no company for that matter, which is why I’ve placed generating revenue a tier above hiring.
The act of hiring is often whimsical and mythical in nature, like a unicorn. Everyone loves to say they’re great at interviewing as they enjoy saying “I know how to pick em”, or “I’m able to sniff out the best from the worst in five minutes”. I always enjoy a good chuckle when I hear comments like this because the reality is that these words often stand on hollow ground. While we love to think we’re great at the process of identifying, vetting and selecting the best people the facts tell a different story:
With stats like this you’d think companies would focus more on their hiring process and approach to improve this area of the business similarly to how they spend endless amounts of time and money on activities like kaizen events and lean initiatives in order to improve yields by a couple percentage points.
In the end the numbers don’t lie as they tell us a sobering story – no one is perfect when it comes to hiring employees. However the quicker we build awareness around our actual performance in the area of hiring the quicker we can begin to improve it.
Below are the ten (10) most common hiring mistakes made in business. As you read through these make a note of how frequent an offender you or your company is with each:
Key Take Away:
The current job market is one of the most competitive hiring landscapes we’ve ever seen. Most of the people in the US workforce have never seen unemployment figures like we’re experiencing today. Orange County, CA unemployment rate in September 2019 was a staggering 2.9%. Meaning, 97.1% of people who are eligible and or able to work are in fact doing so. The numbers nationally don’t get much better, or in favor of the employer, as we’re experiencing 3.5% unemployment nationally. The last time the unemployment rate was this low was in 1969. What does this all mean – it’s a candidates market, not an employers market.
Most, if not all, the good people and therefore candidates are gainfully employed. If you want to improve your chances of landing great employees to help grow your company you need to ensure your hiring practices are addressing and or solving the 10 hiring issues mentioned above.
If you or your company struggle to hire great people one of the best things you can do to correct it is to seek advice and an alternate viewpoint. Ask your employees why they were for your company, learn what matters to them most and why they stick around. Another way to gain insight is to bring in an HR or recruiting consultant to review your current processes. Outsiders can often times see things quicker and easier than you can as they aren’t coming from a lens that is within the company. Their outsider perspective can provide unbiased feedback on the things you need to do to attract better talent.
There’s one thing which has a direct impact to the success a business experiences throughout the year – hiring. Do it right, you’ll probably have a good year. Do it wrong, well, let’s just say you’ll quickly find yourself heading down crap creek without a paddle.
Hiring is an art and a science combine. It’s a tricky process, so much so Harvard Business Review cited 80% of employee turnover is due to bad hiring decisions. Failing to hire the right people can also have a big impact to the company’s financials. According to Dice, an online job board, poor hiring decisions for employees earning $100,000 annually lead to an average cost of $250,000. Basically, if the hiring decision you make ends poorly you can expect that mistake to represent 2.5 times the cost of whatever the salary of the person is you are hired. If they’re at an executive level the cost is even higher.
Long and short, your ability to make the right hiring decisions in 2019 will be crucial to the success of your business, your fellow employees, your newly hired employees and your own career.
Approaching the hiring process with a strategic game plan allows us to increase our chances of successful hiring exponentially while overcoming fears and apprehension along the way. Previously I had shared in another article 15 hiring tips to find the best employees. 15 is a lot, who’s got time for that many tips! Therefore, I’ve summarized it to the top 7 most tips you need to take into consideration when hiring. For the full article and descriptions of each of these tips click here.
Looking to hire successfully in 2019 Follow these seven tips:
1. Know & Share Your WHY
2. Know What You Want Before You Interview
3. Know Your Non-Negotiables
4. Hire Character Over Competency
5. Share Your Leadership Philosophy
6. Ensure Your Interview Process & Collaborators Are Tight & Timely
7. Challenge Your Own Mindset
About the Author
Travis Smith is the founder and managing director of Square-1 Engineering, a life sciences consulting firm, providing end to end technical project services to companies which design, develop and or manufacture products in Southern California. He successfully served the life sciences marketplace in SoCal for over 15 years specializing in engineering services, consulting, project outsourcing and leadership development. In 2019 he was recognized as a ‘40 Under 40’ honoree by the Greater Irvine Chamber of Commerce as a top leader in Orange County, CA.