What’s the greatest cause of employee turnover today?
An economy flush with career opportunity? Downsizing? Retirement? According to a recent study by Harvard University, almost 80% of workplace turnover is due to hiring mistakes.
Many companies spend more time selecting a new copier than they do hiring a new employee. Yet a bad hire can cost your business between two and seven times the amount of the person’s yearly salary. This figure doesn’t even include less obvious costs like lost productivity, drain on management, and lowered morale.
To combat turnover, avoid these 10 costly hiring mistakes:
1. Hiring Not Viewed Strategically.
Many companies regard their hiring process merely as the method of filling job openings. If senior decision makers are involved at all, it’s often a formality. Yet staffing is a strategic issue that can significantly affect your bottom line.
Don’t be reactive. Instead, plan for organizational needs, anticipate attrition, develop bench strength in critical areas, and strengthen relationships with staffing partners.
Likewise, your method of staffing should be considered strategically. Before finalizing any staffing decisions, make sure to do the following:
Analyze the need and determine the best method to satisfy it (e.g., overtime, outsourcing, restructuring job duties of current staff, promoting from within, hiring outside talent, using temporary or project staffing)
Develop a recruiting strategy
Create and follow a structured hiring process
2. OUTDATED OR INADEQUATE POSITION PROFILES How can you take aim if you don’t know what your target looks like? To help target qualified candidates, accurate job descriptions are essential. But they are only part of a complete profile, which should include the following:
• Necessary experience, skills, and talents
• Outline of desired personality traits
• Description of the corporate culture. Even qualified people won’t succeed if their values and the values of the organization aren’t in alignment.
• Key selling points of the position (e.g., perks, career path, flexibility) and of the company (e.g., growth, market position, career opportunities)
• Measurable job objectives and performance expectations
A detailed profile provides guidance to those who are reviewing the candidates, and it better ensures that each applicant is evaluated using the same criteria.
3. Too Much Reliance on Traditional Recruiting Methods