The Hiring Practices of Successful Companies - by Jane Plank
Hiring well decreases employment risks due to terminations, etc. Hiring well increases retention and reduces turnover because the candidates and other employees are more satisfied and it definitely improves things like customer satisfaction, productivity, etc. Of all the changes a company can make in order to improve morale, decrease human resources costs, limit personnel liability, none is more effective than focusing on hiring the right person for the job.
Hiring the wrong person not only causes morale problems, decreases productivity and wastes time, it costs a lot of money. The average cost per hire in the United States ranges from $2,546 to $6,943. Contained in these costs are productivity and vacancy rate costs, lost time for employees who conduct the search and screen and interview the client, the cost for advertising for employees, materials costs, and downtime for two employees during the orientation and training period.
Employee referral programs are the most successful methods of attracting high quality candidates in a consistent way. These programs require attention and investment in order to be successful. A written job description is a prerequisite for a well written posting, good interview questions, and realistic job preview.
During the screening period, prior to interview, a telephone screen can save time. This interview can verify the basis credentials, skills and applicant interest. The applicant can also provide application materials and a resume so that the screening can be done prior to the interview. This would include a background check, verification of credentials and reference checking. If there are two or more red flags in this process, it is wise to move on. All applicants should be able to provide at least two people who can give a supervisory employment reference. This is crucial because the best predictor of future success is past success.
It is important to use behavioral interview questions that force the applicant to draw on real life situations and actual experience. For instance, when interviewing an Administrative Assistant that needs to be proficient in Microsoft Office, ask a question about each software product that requires the candidate to respond with actual situations from prior work.
Realistic job previews improve the assessment of job fit. In a realistic job preview you give the employee an opportunity to perform the duties from the position description while the employer watches. In some cases it may be a simple five minute process and in other cases employers may pay applicants to work for a day. This gives both the employee and the employer an opportunity to assess true fit for the job.
If employers spend time on the hiring process and donít give in to the temptations to hire warm bodies because of business pressures or hiring family members even though they are a poor fit, or ignoring the red flags that say someone is a poor fit because they like the candidate.
This guest article was written by Jane Plank, the Director of Hudson-based HR Department Unlimited. With her years of experience in human resources, Jane can help you avoid legal pitfalls in the future, while helping your company make the most of its employees and staff. Jane can be reached at 330-414-2220.