The average cost of a poor hiring decision is 30% of the employee’s annual salary – which can amount to big bucks when that employee is a senior executive – according to a PI Worldwide report released July 22.
This may not be the only hit a company can take when not carefully vetting out what employees to hire, said the report. Lost productivity, poor morale and further recruiting costs can also result.
Many factors need to be considered when hiring a new employee, and not all of them are directly skills-related. An applicant’s behavioural assets also need to be taken into account.
“When hiring managers lack the training or practice opportunities to conduct effective interviews, they often resort to generic interview questions that don’t evaluate the candidate in the areas that matter most,” said the report.
“Using assessment data to inform the interviewing process can help all members of an interviewing team develop structured behavioral interview questions to determine job and culture fit with greater accuracy.”
Part of this can be achieved by including behaviour-based questions.
It is also essential, before the hiring process even begins, to define what makes a good candidate, and not just in terms of skills; it is necessary for there to be a good cultural fit as well.